Congress passes one-year increase to Medicare physician payment

Congress passes one-year increase to Medicare physician payment in budget bill

Today the U.S. House of Representatives passed the Senate’s version of the budget reconciliation legislation, which includes a one-year 2.5% increase for the proposed 2026 Medicare Physician Fee Schedule to account for sustained cuts as Congress continues to work toward long-term payment reform.

The temporary pay increase is a first step in stemming the tide of cuts physicians have faced for many years. However, Congress can and should do more to protect patient access to physician care.

The increase represents a small accomplishment for health care in a bill that also included deep cuts to many programs including Medicaid. The bill is set to be signed by President Trump on July 4.

AADA President Susan C. Taylor, MD, FAAD, has personally advocated on behalf of the specialty in Washington, D.C. for Medicare payment reform by participating in a roundtable hosted by the House Republican Doctors Caucus, as well as several political events.

The AADA worked with other specialty societies in a coalition to get Medicare physician payment action included in this budget reconciliation legislation.

In April, the AADA joined 14 of the largest national medical societies, including the American College of Surgeons, the American College of Cardiology, and the American Academy of Family Physicians, and demanded that Congress take urgent action on Medicare physician payment reform as it began putting together the reconciliation legislation, which resulted in the insertion of a Medicare physician payment provision that was tied to a portion of the Medicare Economic Index (MEI).

In June, the AADA and 74 other national specialty societies, including the American Association of Neurological Surgeons, American Society of Anesthesiologists, and American Association of Orthopedic Surgeons, sent a letter to Senate Republican leadership urging them to include Medicare payment reform when the Senate considered the reconciliation package. This direct pressure resulted in the inclusion of the one-year physician pay bump after the Senate had initially removed the House’s MEI policy.

Rest assured the AADA will continue to work with federal lawmakers to ensure a stable and sustainable payment system, including an annual inflationary update, for physicians and the patients they serve.