AMA’s Political Influence and Financial Power

The American Medical Association (AMA) claims to exist “to promote the improvement of medical arts and science, and public health.” However, it has evolved into a significant political force, heavily funded by controlling the monopolistic government medical billing codes.

Every year, the AMA generates hundreds of millions from royalties on Current Procedural Terminology (CPT) codes. These codes are vital for doctors to interact with insurance companies and federal bodies when conducting tests or issuing prescriptions. Everyone in healthcare has to use these codes, which come at a cost.

Instead of using this monopoly to benefit physicians and patients, the AMA has diverted its resources to ideological pursuits.

In 2023, the AMA amassed nearly $285 million from these CPT royalties—a staggering figure that underscores its economic strength within healthcare. It’s ranked as one of the most powerful nonprofit organizations in the US healthcare landscape.

This wealth doesn’t stem from medical breakthroughs or excellence, but rather from public resources and infrastructure, specifically developed through federal initiatives. The introduction of Medicare and Medicaid in the 1980s necessitated the use of CPT codes. By 1996, the enactment of the Health Insurance Portability and Accountability Act established these codes as federal standards, granting the AMA significant control over a crucial aspect of American healthcare.

Hospitals and providers have no choice but to comply. Yet, rather than aiding healthcare professionals and patients, it has redirected its assets toward ideological endeavors.

On matters like gun control, the AMA has advocated for raising the legal age for ownership of assault weapons and has opposed the idea of allowing teachers to carry firearms in classrooms.

In terms of climate policy, they’ve labeled climate change a “public health crisis” and set aggressive goals for reducing greenhouse gas emissions. It encourages a plant-based diet as a means to cut emissions rather than prioritizing patients’ health. One AMA paper even noted that producing a single serving of lean meat generates significantly more carbon dioxide than increasing bean consumption.

During the responses to the George Floyd protests, the AMA declared racism an “emergency public health threat,” vowing to dismantle discriminatory policies and linking policing to adverse health outcomes.

This approach is primarily political advocacy rather than public health, supported by the vast resources the AMA secures through government-protected monopolies.

In 2024, the AMA spent nearly $25 million on lobbying efforts—significantly more than groups like the National Rifle Association, which spent just $2 million. Industries like beef and dairy, threatened by AMA-backed climate initiatives, contributed much less toward lobbying.

Through its political donations and lobbying, the AMA effectively utilizes taxpayers’ money to further its political agendas.

Recently, reports have surfaced indicating that allies of Robert F. Kennedy Jr. have suggested transferring CPT surveillance control from the AMA to the Centers for Medicare and Medicaid Services. This could be a prudent move for any administration to consider seriously.

There’s already a working model: healthcare providers use ICD codes, which are freely available and globally standardized. So, why couldn’t procedural codes like CPT operate under the same model?

Ending the AMA’s monopoly over CPT codes wouldn’t just dismantle a political apparatus; it would liberate American healthcare from gatekeepers who have strayed far from their original purpose.

The CPT code is essentially public infrastructure. Allowing private groups with political motives to profit impedes progress in addressing vital issues.

Thus, there exists a genuine opportunity for the Trump administration, alongside RFK Jr. at the Department of Health and Human Services, to eliminate this loyalty system, transition CPT to the public domain, and disrupt the AMA’s cash flow.

It’s high time we refocus on medicine without the interference of politics.