Real Physician Revenue Down 33.6% Since 2016 Due To Medicare & Medicare Advantage Reimbursement Trends & Inflation

Medicare and Medicare Advantage physician reimbursement trends combined with inflation since 2016 have resulted in a 33.6% decline in real physician revenue for treating Medicare and Medicare Advantage beneficiaries, according to a recent analysis. Factors cited that affect real physician revenue include:

A 10% cumulative decrease in traditional Medicare reimbursement rates since 2016.

Medicare Advantage reimbursement rates that are 10% to 15% lower than Traditional Medicare rates.

An increase in the percentage of beneficiaries enrolled in Medicare Advantage plans, rising from 33% in 2016 to 54% in 2024.

A 30% cumulative cost increase due to inflation for staff salaries . . .