A “massive” budget package passed by the House May 22 includes a 2.25% boost to Medicare physician payments in 2026.
The American Medical Association voiced its support for the $8.9 billion increase in pay on May 22. The bill would tie Medicare physician payment to 75% of the Medicare index that tracks physician practice-cost inflation.
“The AMA appreciates that the bill adopted today addresses the problem of decreasing Medicare payment for physician services,” AMA president Bruce Scott, MD, said in a statement. “Continued cuts threaten access to care for America’s seniors, and the inclusion of an update for 2026 that partially accounts for inflation is an important step. This must, however, represent only the first step to ensuring that Medicare payments keep up with inflation over the long term, as they do for other Medicare providers.”
Under current law, Medicare physician payment is set to rise 0.25% in 2026 and cap out with a 2.5% annual increase in 2035. If the budget proposal is enacted, physicians would see their annual Medicare payments rise 4.3% by 2035, according to the AMA.
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