On Wednesday, May 20, the House Energy & Commerce Subcommittee on Health held a hearing entitled, “Examining the Medicare Physician Fee Schedule, MACRA, and Opportunities for Payment Reforms.” It marked the fourth hearing in the Committee’s health care affordability series—and primary care took center stage at the hearing.
Witnesses included:
- William Fox, MD, MACP, Chair Emeritus, American College of Physicians Board of Regents, Fox & Brantley Internal Medicine
- Steven Furr, MD, FAAFP, Family Medicine Physician and Former President of American Academy of Family Physicians
- Dana Smetherman, MD, MPH, MBA, FACR, Chief Executive Officer, American College of Radiology
- Rick Snyder, MD, President, HeartPlace
- Farzad Mostashari, MD, Chief Executive Officer and Co-Founder, Aledade
Representatives and witnesses emphasized the critical role primary care plays in improving the health of Americans. Yet despite its importance, primary care remains chronically underinvested in and continues to face a growing workforce shortage. Lawmakers repeatedly sought solutions to better incentivize and support medical students and practicing primary care clinicians in entering and remaining in the field.
A recurring theme throughout the hearing was the idea of primary care serving as the “quarterback” of the American health care system. Speakers highlighted primary care as a critical entry point, providing chronic disease prevention, care coordination and lifestyle medicine through trusted, long-term patient-clinician relationships. Witnesses and members alike noted that stronger investment in primary care is associated with improved health outcomes and lower overall health care costs.
Five major themes emerged from the hearing:
Primary Care as the Backbone of a Healthy America
Ranking Member Diana DeGette (D-CO-01) emerged as a champion for primary care during the hearing. In her opening statement, she described primary care as “the backbone of a healthy population.” Drawing from her personal experience as the mother of a primary care physician, Rep. DeGette emphasized the need to strengthen primary care through increased investment and improved reimbursement for primary care services.
Other members, including Representatives Kelly (D-IL-02) and Carter (D-LA-02), also highlighted the integral role primary care plays in supporting seniors living with one or multiple chronic conditions.
Greater Investment in Primary Care & Hybrid Payment Models
Representatives from across the health care field emphasized that Medicare Physician Fee Schedule reimbursement rates have failed to keep up with inflation. When asked how best to support primary care clinicians in serving complex patient populations, Drs. Fox and Furr stressed the importance of both greater investment in primary care and expanded access to hybrid payment models.
They argued that upfront per-member-per-month payments (PMPM), coupled with fee-for-service reimbursement, gives clinicians greater flexibility to manage patient needs, build care teams, invest in technology and deliver more comprehensive whole-person care.
Representatives John Joyce (R-PA-13 ) and Gus Bilirakis (R-FL-12) also emphasized the need to strengthen the primary care workforce by incentivizing medical students to enter the specialty and by modernizing the Medicare reimbursement system to better support independent primary care practices.
Supporting Rural Communities
Supporting America’s rural health communities stood out as a bipartisan priority throughout the hearing. Representative Carter (D-LA-02) emphasized the challenges facing rural populations during his opening remarks, stating:
“Rural patients are sicker and older, have a higher risk of chronic disease, and are more likely to rely on Medicare and Medicaid. This is a patient population that needs more access, not less, yet they are more likely to face barriers to care because there simply are not enough doctors.”
Witnesses took the opportunity to stress the importance of training the next generation of clinicians in rural settings, noting that physicians are more likely to practice in the communities where they train. Several witnesses encouraged Congress to increase reimbursement for Graduate Medical Education (GME) training opportunities and expand hybrid payment models that would allow clinicians to build care teams, reduce administrative burden and better support rural patient populations.
Reducing Administrative Burden for Clinicians
Reducing administrative burden surfaced as a key priority, with several members focusing their questioning on how streamlining reporting requirements could give clinicians more time for direct patient care and help sustain independent practices. Representative Guthrie (R-KY-02) specifically raised concerns about the burden associated with programs such as MIPS and the disproportionate impact reporting requirements have on rural and small independent practices.
Both lawmakers and witnesses called for greater standardization and simplification of reporting requirements to reduce administrative burden and allow clinicians to spend more time caring for patients.
Consolidation of Independent Practices
Lawmakers sought to better understand both the root causes of vertical integration and its downstream effects on patients and clinicians. Committee members raised concerns about the number of independent practices being bought up by larger health systems and the unintended consequences consolidation can have on patient access and choice.
Witnesses and lawmakers testified that financial instability, growing administrative burden, clinician burnout and persistent staffing shortages, has contributed to the decline of independent practices. Witnesses also pointed to existing federal incentives that make it easier for hospitals and health systems to acquire smaller practices.
Dr. Furr explained that operating an independent practice is like running a small business, noting that without stable reimbursement, many practices struggle to remain financially viable while continuing to support the needs of their patient populations.