5 federal policy updates for physicians to know

Here are five federal policy updates that physicians and leaders need to know, as reported by Becker’s since April 8:

  1. House Republicans backtracked on two major proposals to cut Medicaid funding in their budget reconciliation efforts. Proposals to reduce the Federal Medical Assistance Percentage for Medicaid expansion states and to implement per capita caps on Medicaid funding were removed from the reconciliation package. 
  2. CMS proposed a series of payment updates across multiple care settings for fiscal year 2026, including a 2.4% payment increase for inpatient hospitals, translating to a $4 billion funding surge.
  3. CMS Administrator Mehmet Oz, MD, announced his vision for the agency, which includes a commitment to President Trump’s “Make America Healthy Again” agenda and modernizing Medicare, Medicaid and the ACA marketplace.  
  4. The Senate passed an amended fiscal 2025 budget revolution that maintained proposed cuts to Medicaid, including the introduction of work requirements. According to a Congressional Budget Office analysis published in 2023, work requirements could save $109 billion over 10 years.
  5. CMS released its final rule for Medicare Advantage and Part D for 2026, which includes streamlining prior authorization processes and clarifying the use of supplemental benefits.

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