What You Need to Know About RFK Jr.’s Proposal to Reform Medical Billing Codes

In a bold proposal that could reshape the healthcare billing landscape, Robert F. Kennedy Jr. has suggested removing the American Medical Association’s (AMA) longstanding authority over CPT billing codes, transferring that responsibility to the Centers for Medicare & Medicaid Services (CMS).

At Medical Billing Management (MBM), we believe this conversation deserves attention—not just from policymakers, but from every provider, practice manager, and billing partner navigating the daily realities of revenue cycle management.

The AMA’s Role in Medical Billing—Until Now

For decades, CPT (Current Procedural Terminology) codes have been the foundation of how medical services are documented, billed, and reimbursed. These codes are developed, maintained, and licensed by the AMA, which generates substantial revenue through licensing fees required by:

• EHR and billing software companies

• Insurance providers

• Hospitals and private practices

  
  

Because of this, many critics argue the AMA has a financial incentive to preserve complexity and to make frequent changes that may not always align with clinical necessity or billing efficiency.

What RFK Jr. Proposes

The RFK Jr. proposal would move the responsibility for medical billing code oversight from the AMA to CMS, a public agency. The goal?

• Eliminate licensing fees tied to CPT codes

• Create a public-domain system for greater transparency

• Reduce administrative burden by centralizing code management under a government body that already manages diagnosis codes (ICD-10) and non-physician services (HCPCS Level II)

  
  

What This Could Mean for Your Practice

Billing Codes Aren’t Going Away—But They Might Change

If the proposal moves forward, CMS would either replicate the CPT framework under public ownership or expand its existing HCPCS system to incorporate physician services. Either way, codes would still exist—but the source, structure, and update process could all change.

You Might Pay Less for Your Tools

Removing licensing fees could reduce costs for software vendors, potentially leading to lower prices for practices over time—or at the very least, less restrictive contracts.

Major Transitions Would Be Required

A shift of this magnitude could require:

• New software integrations and updates

• Staff retraining across clinical, billing, and administrative teams

• System-wide adjustments to ensure claim accuracy and reduce denials during the transition

  
  

Risk of Slower Innovation

While the AMA has its flaws, it is responsive to medical innovation—frequently updating codes to reflect new technologies and procedures. CMS may move more slowly, potentially delaying reimbursements for newer treatments unless safeguards are in place.

MBM’s Position: Be Ready, Stay Agile

Whether this reform gains traction or not, it’s a signal that the status quo is being challenged. We see this as an opportunity—not a threat. At MBM, we’re already planning for:

• Flexible billing logic that can adapt to new systems

• Client education and transition support

• Direct conversations with software vendors to ensure readiness

  
  

We’ll continue monitoring this story and offering strategic guidance to all our partners. If the billing code ecosystem changes, we’ll help you lead the transition—not scramble to catch up.