Through the reconciliation process earlier this summer, Congress passed a 2.5% increase to the Medicare Physician Fee Schedule for 2026. While this short-term relief is appreciated, it does not effectively address the fundamental issues within the Medicare payment system, and it is largely counteracted by the new efficiency adjustment in the recently-released proposed rule for the CY 2026 Medicare Physician Fee Schedule (PFS). 

Over the past 20 years, year-to-year cuts have led to a 33% decrease in physician reimbursement when adjusted for inflation, while practice expenses have risen 60% during the same period. Clinicians cannot continue to absorb these cuts without facing serious financial repercussions, which ultimately threaten patient access to care. 

Last Congress, the Strengthening Medicare for Patients and Providers Act was introduced, which sought to add an automatic inflationary update to Medicare physician payment tied to the Medicare Economic Index. Additionally, the Physician Fee Stabilization Act (S. 4935) and the Provider Reimbursement and Stability Act (H.R. 6371) were introduced and sought to increase the budget neutrality threshold from $20 million to $53 million. We hope that this Congress will revisit and, ideally, reintroduce similar measures to pursue this necessary reform. 

Send messages to your lawmakers today, urging them to introduce or support legislation this Congress that appropriately recognizes clinician value and promotes stability within the Medicare payment system.