THE PHYSEMP INDEX: The Money

PhysEmp staff, 2021.

Medicare physician reimbursement change since 2001, adjusted for inflation: −33%

Increase in physician practice overhead since 2001: +47%

(We will pause here to let that sink in. Take your time.)

Medicare reimbursement cut 2025: −2.83%

Medicare reimbursement increase for hospital outpatient departments 2025: +2.9%

(The hospitals got a raise. The doctors got a cut. This is what economists call “a system
working exactly as designed” within today’s physician compensation landscape.)

Government share of congressional health insurance premiums: 72–75%

Minimum years of service to carry that into retirement: 5 yrs

Average number of years in COngress 8.6 yrs

Annual fee a member of Congress pays for their own on-site Capitol physician: $650

(I am not making this up.)

These disparities are not random — they reflect deeper structural imbalances in
physician compensation and demand that continue to shape how care is delivered, who
stays in practice, and where financial pressure ultimately lands.

Sources: AMA, CMS 2025, Congressional Research Service, Becker’s Healthcare

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