Examining the Medicare Physician Fee Schedule, MACRA, and Opportunities for Payment Reforms

Health Care Costs and Drug PricingHouse Energy and Commerce Subcommittee on Health · May 20, 2026 · 119th Congress
The House Energy and Commerce Subcommittee on Health held this hearing to examine the Medicare Physician Fee Schedule, ten years after MACRA's enactment, and to consider reforms to the Merit-based Incentive Payment System (MIPS) and Alternative Payment Models (APMs). Begins at ▶ 0:10:27
Transcript
Highlights

Title

Reforming Medicare physician payment and MACRA's MIPS/APM programs

Purpose

The House Energy and Commerce Subcommittee on Health held this hearing to examine the Medicare Physician Fee Schedule, ten years after MACRA's enactment, and to consider reforms to the Merit-based Incentive Payment System (MIPS) and Alternative Payment Models (APMs). Members and five physician witnesses discussed the 33% inflation-adjusted decline in physician reimbursement since the early 2000s, budget-neutrality rules, site-of-service payment disparities, and the resulting consolidation of independent practices into hospital systems. The hearing also touched on broader affordability debates, including expiring ACA premium tax credits and Medicaid cuts. Begins at▶ 0:10:27

Who spoke

• Chairman Morgan Griffith (R-VA)▶ 0:10:27: Opened by explaining the hearing's focus on MACRA reforms and MIPS/APM administrative burdens on small and rural practices▶ 0:13:45; later questioned witnesses on practice consolidation and budget neutrality▶ 0:56:21.

• Rep. Diana DeGette (D-CO), Ranking Member▶ 0:16:07: Said Medicare physician payment has declined 33% in real terms since 2011 and Medicaid payments are even lower▶ 0:17:00; shared her daughter's experience as a primary care doctor and pressed witnesses on chronic-disease management▶ 1:01:27.

• Rep. Brett Guthrie (R-KY), Full Committee Chairman▶ 0:21:31: Said the hearing builds on the committee's affordability series and that payment instability is driving consolidation▶ 0:21:57; later asked Dr. Fox and Dr. Furr about fee-schedule accuracy and MIPS burden on rural practices▶ 1:06:05.

• Rep. Frank Pallone (D-NJ), Ranking Member of Full Committee▶ 0:23:55: Attributed health-system strain to Medicaid cuts in the "big ugly bill" and expiring ACA premium tax credits▶ 0:24:23; asked Dr. Mostashari and Dr. Furr about APM bonus design▶ 1:10:58.

• Dr. William Fox, ACP Chair-Emeritus▶ 0:29:42: Testified his Charlottesville practice has 6–10 month waits for new patients▶ 0:31:27; recommended ending fee-schedule budget neutrality, supporting Advanced Primary Care Management (APCM) codes, and extending the 5% APM bonus▶ 0:33:31.

• Dr. Steven Furr, family physician (Jackson, AL)▶ 0:34:31: Described a diabetic patient whose A1C fell from over 9 to 5.5 using GLP-1 injectables and in-office retinal scans▶ 0:35:29; said primary care gets under $0.05 of every health care dollar▶ 0:37:12 and urged permanent prospective payment options▶ 0:38:41.

• Dr. Dana Smetherman, CEO, American College of Radiology▶ 0:39:54: Said radiologists don't control imaging volume yet face declining reimbursement▶ 0:40:45; urged passage of the ROOT Act, projected to save about $2 billion over ten years▶ 0:43:30.

• Dr. Rick Snyder, President, HeartPlace PLLC▶ 0:44:39: Described the "magic elevator ride" — an echocardiogram costs $123 in his office versus over four times that one floor below in a hospital outpatient department▶ 0:46:30; said hospitals acquired nearly 33,000 physician practices and 181,000 physicians from 2018–2026▶ 0:47:20.

• Dr. Farzad Mostashari, CEO/Founder, Aledade▶ 0:49:59: Opened by honoring his mother, who died in hospice care while enrolled in an ACO▶ 0:51:10; argued MACRA's implementation has not created a meaningful gap between APMs and MIPS, and proposed making the APM bonus a site-neutral, per-patient payment paid immediately rather than after a two-year lag▶ 0:59:47.

• Rep. Diana Harshbarger (R-TN), Vice Chair▶ 1:16:10: Discussed her ROOT Act and pressed Dr. Smetherman on its administrative fixes▶ 1:17:48; asked Dr. Furr how Medicare payment drives consolidation in rural areas▶ 1:19:52.

• Rep. Raul Ruiz (D-CA)▶ 1:21:35: Cited a projected 86,000-physician shortage by 2036 and touted his bill (with Rep. Bilirakis), H.R. 6160, tying Medicare physician pay to the Medicare Economic Index▶ 1:23:33; got all five witnesses to affirm support for the bill▶ 1:26:13.

• Rep. Gus Bilirakis (R-FL)▶ 1:26:41: Noted he co-sponsors H.R. 6160 and described his own late brother's career as an underpaid primary care physician▶ 1:31:50; asked Dr. Snyder and Dr. Smetherman about staffing and equipment pressures▶ 1:28:30.

• Rep. Robin Kelly (D-IL)▶ 1:32:42: Shared that her late husband was a physician who made house calls▶ 1:33:06; asked Dr. Furr how underinvestment in primary care threatens rural access▶ 1:34:29.

• Rep. Buddy Carter (R-GA)▶ 1:37:38: Noted he is a pharmacist and member of the Doctors Caucus; asked Dr. Schneider (Snyder) about facility-fee cost shifts and cited a CBO staff meeting where no one could name a case of consolidation saving money▶ 1:40:05.

• Rep. Kim Schrier (D-WA)▶ 1:42:22: Described a Pullman, WA primary care practice told to stop seeing Medicare/Medicaid patients until profitable▶ 1:44:01; noted primary care physicians earn about $3 million less over a career than specialists▶ 1:47:07; later asked about capitated payment models and vertical integration concerns with Optum▶ 2:34:52.

• Rep. John Joyce (R-PA)▶ 1:47:38: Asked Dr. Fox whether hospital acquisition of independent practices reduces personalized care and access▶ 1:48:03; had the panel raise hands affirming independent practice reduces systemwide costs▶ 1:49:30.

• Rep. Lizzie Fletcher (D-TX)▶ 1:52:35: Said Houston-area physicians face declining reimbursement not keeping pace with inflation, forcing practice closures▶ 1:53:28; asked Dr. Fox about the impact of the missing inflationary update▶ 1:55:18.

• Rep. Mariannette Miller-Meeks (R-IA)▶ 1:56:53: Cited a 30% increase in hospital inpatient base rates and 26% increase in outpatient rates since 2016 versus flat physician rates▶ 1:58:39; touted her bill, H.R. 8622, to replace MIPS▶ 2:01:45.

• Rep. Marc Veasey (D-TX)▶ 2:02:27: Noted family medicine residency slots filled only 83% this year versus 100% for some specialties, and a projected 70,000 primary care physician shortage by 2038▶ 2:03:20.

• Rep. Troy Balderson (R-OH)▶ 2:07:35: Asked Dr. Mostashari about leveraging health IT to reduce administrative burden▶ 2:08:05; asked Dr. Fox and Dr. Snyder about inflation-based fee updates▶ 2:10:25.

• Rep. Troy Carter (D-LA)▶ 2:13:06: Said 73% of his district lives in a primary care shortage area and Louisiana ranks fourth in chronic disease▶ 2:13:52; asked about GME training location's effect on rural retention▶ 2:14:37.

• Rep. Pat Ryan (D-NY)▶ 2:18:44: Asked Dr. Furr how payment instability contributes to rural workforce shortages▶ 2:19:16; asked Dr. Snyder about cardiac PET scan reimbursement▶ 2:20:34.

• Rep. Greg Landsman (D-OH)▶ 2:23:56: Questioned whether Medicare Trust Fund revenue adequacy, not just fee schedule policy, is the real issue, tying it to payroll tax structure▶ 2:24:34; exchanged views with Dr. Mostashari on health care spending versus prevention investment▶ 2:26:54.

• Vice Chair Diana Harshbarger / Chairwoman (presiding later)▶ 2:29:14: Criticized administrative burden as "a load of BS" not improving care or cost▶ 2:29:38; asked witnesses for concrete MIPS simplification ideas▶ 2:31:46.

• Rep. Lori Trahan (D-MA)▶ 2:45:10: Cited a 2020 study finding Medicare reimburses over 100 female-anatomy surgical codes about 30% less than comparable male-anatomy procedures▶ 2:45:30; asked Dr. Fox and Dr. Mostashari how this affects OB-GYN access and provider compensation▶ 2:47:19.

Key moments

• Dr. Snyder's "magic elevator ride": an echocardiogram costs $123 (plus ~$24 copay) in his office but more than quadruples in price one floor below in the hospital outpatient department▶ 0:46:30▶ 0:47:02.

• Dr. Furr described a patient whose Hemoglobin A1C fell from over 9 to 5.5 over four years, with zero ER visits or hospitalizations, using weekly GLP-1 injections and in-office diabetic retinal scans▶ 0:35:01▶ 0:35:57.

• Dr. Mostashari disclosed his mother's death days earlier and credited her ACO enrollment for coordinated post-hip-fracture home care, prompting the Chair to call for a moment of silence▶ 0:50:25▶ 0:55:53.

• Snyder testified hospitals acquired nearly 33,000 physician practices and 181,000 physicians from 2018–2026, and that independent physicians fell from ~60% to ~18% of the workforce over roughly a decade▶ 0:47:20▶ 2:00:11.

• Smetherman said the ROOT Act (Rep. Harshbarger's bill) would save an estimated $2.4 billion in Medicare spending over ten years while reducing patient out-of-pocket costs and radiation exposure▶ 0:43:30▶ 1:19:01.

• Rep. Ruiz got unanimous support from all five witnesses for H.R. 6160, tying Medicare physician payment to the Medicare Economic Index▶ 1:26:13.

• Rep. Carter said CBO staff, when directly asked, could not name a single example of health-care consolidation saving money▶ 1:40:05.

• Rep. Trahan cited a 2020 study finding over 100 codes for female-anatomy surgeries reimbursed roughly 30% lower than comparable male-anatomy procedures, with some categories reimbursed up to 135% higher for male patients▶ 2:45:30▶ 2:45:56.

• Dr. Mostashari argued the APM bonus structure is flawed because payments arrive two years after enrollment and are tied to a percentage of billing rather than a flat per-patient, site-neutral amount, disadvantaging lower-paid primary care▶ 0:59:47▶ 1:00:32.

• Rep. Landsman challenged witnesses on whether the debate was really about insufficient Medicare Trust Fund revenue rather than payment policy alone; Dr. Snyder replied it is a "cost efficiency" issue, not insufficient spending, citing $4.8 trillion in 2023 national health spending projected to reach $8.7 trillion by 2033▶ 2:24:59▶ 2:26:54.

Metadata

CommitteeHouse Energy and Commerce Subcommittee on Health
Chamber / CongressHouse · 119th Congress
DateMay 20, 2026
TypeHearing
Witnesses
Dr. William Fox — Chair-Emeritus, Board of Regents
Dr. Steven Furr — Family Medicine Physician
Dr. Dana Smetherman — Chief Executive Officer, American College of Radiology
Dr. Rick Snyder — President, HeartPlace PLLC
Dr. Farzad Mostashari — Chief Executive Officer and Founder, Aledade, Inc.
Dr. William Fox — Chair-Emeritus, ACP Board of Regents
Videoyoutube
Transcript367 caption blocks · 26,389 words · 2:50:31 runtime
EventCongress.gov 119304