If you think the American Medical Association is just a group of helpful doctors, think again. Behind the scenes, the AMA is raking in government-mandated royalties while pushing a political agenda with your tax dollars.
Key Facts: AMA Dirty Little Secret Tied to Federal Mandates
- The AMA made $495 million in 2023, with $308 million coming from royalties on CPT codes.
- CPT codes, used to report medical services, are federally mandated and controlled by the AMA.
- The AMA’s CEO earned $2.75 million last year; total salaries topped $250 million.
- The AMA spent nearly $25 million on lobbying in 2024, backing gender transition policies for minors and inmates.
- RFK Jr., as HHS Secretary, is reportedly considering removing CPT control from the AMA.
The Rest of the Story: How AMA’s Monopoly Was Built With Federal Help
The American Medical Association (AMA) is not a government body.
It’s a private trade association that has secured a near-monopoly over the CPT (Current Procedural Terminology) code system, thanks to decades of federal mandates.
These codes are essential for doctors and hospitals to bill Medicare, Medicaid, and private insurers.
Since 1983, federal health agencies like CMS have required the use of AMA’s CPT codes.
HIPAA cemented this in 1996 by making CPT codes the national standard for electronic billing.
Providers can’t operate without them — and must pay royalties to the AMA to use them.
This government mandate has turned into a financial juggernaut.
In 2023 alone, CPT royalties made up over 60% of the AMA’s revenue.
At the same time, the AMA has been using this taxpayer-supported windfall to push aggressive social policies through lobbying and political advocacy.
Commentary: Why the Government Must Break Up the AMA’s Monopoly
The AMA dirty little secret is that a private organization profits massively from a government mandate — and uses that cash to push a radical agenda.
Every year, taxpayers and private insurance holders foot the bill, not just for health care, but for the AMA’s political machine.
The AMA has gone from a medical trade group to a political powerhouse, openly promoting gender transitions for children and inmates, even pushing for taxpayer-funded procedures.
These are not fringe statements.
They’re official policy, written into public letters and backed by lobbying dollars.
Meanwhile, the average taxpayer — already burdened by rising medical costs — is unknowingly funding this agenda through CPT code royalties.
That’s a broken system.
When the AMA’s CEO takes home nearly $3 million and its top brass are paid over $17 million collectively, we’re not looking at a nonprofit medical advocate.
We’re looking at a well-oiled, government-backed political operation.
There’s no reason this system can’t be replaced.
Just look at the ICD codes — used globally and made available for free.
A modern team of skilled developers could create a replacement system for CPT codes in months, if not weeks.
Think of it like DOGE meets public service: lean, efficient, and built for the people.
It’s time the Trump administration — or any administration serious about accountability — strips the AMA of its monopoly.
CMS should take over code management, saving taxpayers billions and removing politics from a system that should be about care, not ideology.
There’s nothing wrong with having medical guidelines, but when those guidelines are tied to lobbying, social experimentation, and taxpayer cash, it’s time to pull the plug.
Let’s end the AMA’s free ride.
The Bottom Line: Why the AMA Dirty Little Secret Needs National Attention
The AMA has turned a government mandate into a billion-dollar revenue stream.
But that stream is being used to fund social policies many Americans oppose.
With proven alternatives available, there’s no excuse for continuing this arrangement.
Ending the AMA’s CPT monopoly would be a win for taxpayers, patients, and transparency in health care.
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