H.R. 2474: Fight Against Physical Therapy Medicare Cuts

Introduction

Every year, physical therapy clinics face a grim certainty: Medicare cuts. These cuts, stemming from outdated payment models, budget neutrality requirements, and sequestration, have placed clinics under significant financial strain. Rising care costs combined with stagnant or declining reimbursements create a system where quality care becomes increasingly difficult to deliver.

H.R. 2474, the Strengthening Medicare for Patients and Providers Act, offers a promising solution. By adjusting Medicare payments to align with medical inflation, this bill aims to eliminate the yearly financial challenges physical therapists (PTs) endure. As the push to pass this critical legislation intensifies, now is the time for every PT to step forward and advocate for change.

Understanding the Crisis: The Impact of Medicare Cuts

Physical therapy Medicare cuts don’t just reduce reimbursements; they destabilize the entire healthcare ecosystem. The current Medicare Physician Fee Schedule fails to account for the rising costs of operating a clinic. From administrative burdens to staff salaries and equipment, costs continue to climb, while Medicare payments have declined by 26% (adjusted for inflation) between 2001 and 2023.

The Consequences of Budget Neutrality

Under the existing system, budget neutrality rules trigger payment redistributions. This means cuts are made to offset increased spending elsewhere, directly impacting clinics’ ability to invest in new strategies and provide high-value care. Sequestration and the lack of value-based care models exacerbate these issues. Small, independent, and rural practices feel the strain even more, leaving them vulnerable to closure and reducing patient access to essential services.

How H.R. 2474 Addresses Physical Therapy Medicare Cuts

H.R. 2474 proposes a game-changing reform by tying Medicare payment updates to the Medicare Economic Index (MEI). The MEI reflects inflation in healthcare providers’ costs, including wages and overhead expenses. By implementing this annual adjustment, the bill offers:

Financial Stability: Clinics can better manage rising operational costs and sustain quality care.
Fair Reimbursement: Payments that reflect actual practice costs help ensure clinics remain financially viable.
Long-Term Reform: By addressing systemic flaws in the fee schedule, this bill reduces the need for temporary fixes.

Why Now Is the Time to Act

With 164 cosponsors already, H.R. 2474 is closer than ever to becoming law. However, it requires 218 votes to pass. This is where the physical therapy community plays a crucial role. Legislators listen to their constituents—especially during critical advocacy periods like October, when Congress members dedicate time to meet with the people they represent.

Advocacy doesn’t stop at signing petitions or sharing posts online. It requires direct action:

Reach Out to Congress Members: Share your personal experiences as a PT. Explain how Medicare cuts affect your practice and your patients.
Invite Legislators to Your Clinic: Help them see the real-world impact of their decisions.
Collaborate with Advocacy Leaders: Connect with professionals like Lance Mabry, PT, DPT, OCS, FAAOMPT, who are leading the charge for H.R. 2474.

What Happens If We Don’t Act?

Without legislative reform, the financial pressure on PT clinics will continue to grow. Many clinics may face closures, leaving patients without access to critical care. PTs cannot innovate or invest in new care delivery methods if their operating margins remain razor-thin.

Giving up on advocacy means accepting a broken system. Advocacy, though demanding, is the only path to sustainable change.

How You Can Help

If you’re a physical therapist or supporter of the profession, here’s what you can do:

Contact Your Congress Member: Call, email, or book an appointment to discuss H.R. 2474.
Share Your Story: Explain how Medicare cuts have impacted your clinic and your ability to provide care.
Engage Your Network: Encourage colleagues and patients to join the fight for reform.
Stay Informed: Follow updates from organizations like APTA and advocacy leaders like Lance Mabry.

The month of October is crucial. Congress members are listening. Let’s ensure they hear our collective voice loud and clear.

Conclusion

The fight against physical therapy Medicare cuts is not just about reimbursement; it’s about securing the future of quality care. H.R. 2474 provides a viable solution to the ongoing challenges clinics face. By tying payments to medical inflation, this bill can end the cycle of financial strain and enable clinics to thrive.

The time to act is now. Together, the physical therapy community can bring about meaningful reform and create a sustainable healthcare system for both providers and patients.

Call to Action

Reach out to your Congress member today. Share your story. Advocate for H.R. 2474. Your voice matters, and your efforts can make a difference.

Encouraging Engagement

What are your thoughts on this legislative change? Join the conversation on LinkedIn. Connect with us and share how ezPT can assist you in keeping up with these legislations.

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