A bipartisan Medicare reform effort is gaining momentum in Congress, with lawmakers advancing legislation aimed at fixing the budget-neutrality rules that have contributed to years of physician payment cuts. The proposed Provider Reimbursement Stability Act would raise the threshold that triggers payment reductions, update cost calculations more regularly, and limit annual swings in Medicare’s physician conversion factor.
The push comes as physicians face uncertainty over the future of a temporary 2.5% Medicare pay increase for 2026, which expires at the end of the year. Physician groups argue that Medicare reimbursement has failed to keep pace with inflation and rising practice costs, fueling concerns about physician shortages, practice consolidation, and access to care, particularly in rural and underserved communities.