IMA Calls for Senate Investigation of the American Medical Association (AMA) for Conflicts of Interest and Enrichment Through HHS Regulatory Capture
“The AMA pockets hundreds of millions from CPT code royalties, adopted by HHS as the U.S. healthcare standard for billing, reporting, and administration. It’s essentially an AMA tax on US healthcare.”
(Washington, DC) — The Independent Medical Alliance (IMA) today called on the U.S. Senate to launch an immediate investigation into the American Medical Association (AMA) for conflicts of interest and potential regulatory capture of HHS through its proprietary Current Procedural Terminology (CPT) coding system.
This request follows the AMA’s recent call for a congressional investigation of RFK Jr. over his decision to remove conflicted members from the Advisory Committee on Immunization Practices (ACIP). Kennedy’s move was widely viewed as an effort to restore transparency and reduce industry influence in federal healthcare policy.
Though it’s estimated that AMA represents less than 15% of U.S. physicians, its CPT codes—developed and copyrighted by the organization— act as the AMA’s toll booth between Americans and their healthcare, generating an estimated $150–$160 million in annual royalties and accounting for nearly half of the organization’s revenue.
These codes, mandated by HHS for billing and reporting across Medicare, Medicaid, and private insurance, are embedded in every medical transaction—from routine checkups to complex surgeries. This creates a hidden tax on healthcare, inflating costs for providers, insurers, and ultimately patients, while enriching an organization with deep ties to industry stakeholders.
“Wrestling control of CPT codes from the AMA would strike a bold move for taking back the nation’s healthcare from special interests,” said Lynne Kristensen, IMA Communications Director. “RFK Jr.’s purge of conflicted interests from ACIP sent shockwaves through Pharma. Now, the AMA is circling the wagons, desperate to protect its CPT cash cow. If Kennedy turns his ‘Make America Healthy Again’ lens on the AMA’s stranglehold over billing codes, it could spark a revolution in healthcare affordability.”
Beyond royalties, the AMA’s influence extends through its Specialty Society Relative Value Scale Update Committee (RUC), which recommends payment rates for CPT codes. CMS accepts more than 90% of these recommendations—a process critics say favors high-cost specialties at the expense of primary care, driving up overall healthcare spending and padding profits for industry giants.
Kennedy’s team has hinted at exploring alternatives, such as open-source coding systems or HHS-developed standards, to replace the AMA’s proprietary model. Such a move would align with his broader mission to dismantle “corporate capture” in healthcare. The AMA, backed by its $20 million annual lobbying machine, has already signaled defiance, framing Kennedy’s reforms as politically motivated.
“Taking on the AMA’s CPT monopoly is like storming a fortress of Washington, DC influence and money,” said Kristensen. “But it’s a logical next step in challenging entrenched special interests. We urge the Senate to fully investigate, and for HHS to wrestle control of CPT codes away from the AMA, prioritizing patients over the AMA’s bottom line.”
