MedPac first unveiled the proposal in September and it was greeted with a resounding thud.
MedPAC's proposal brought howls of protests from the American Medical Association.
"The recommendation voted on today by MedPAC flies in the face of their previous recommendations to stop harmful physician cuts that threaten access to care for patients," AMA President Peter W. Carmel, MD, said in prepared remarks.
"There is already a 20% gap between Medicare payment updates and the cost of providing healthcare to seniors. Many physicians may also face upcoming payment penalties related to electronic prescribing, health information technology and quality reporting programs. Adding additional physician payment cuts to this mix will leave many physicians unable to care for Medicare patients or make the investments needed to participate in new models of care that can increase coordination and reduce costs."
The American Hospital Association this week told MedPAC that it should stop punishing hospitals – which are already facings cuts of $155 billion in reimbursement cuts over 10 years under the Affordable Care Act.