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Bill would raise threshold for Medicare doctor payment adjustments

In markupH.R. 8163Latest action

Sponsor: Gregory F. Murphy · Representative · NC

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Official title: Provider Reimbursement Stability Act of 2026

119th Congress

Topics: Health care

Introduced:

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In plain words

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The bill raises the $20 million Medicare payment-adjustment threshold to about $54 million and caps yearly payment swings at 2.5%.

45-second read · 4 questions answered below

What does this do?

This bill changes how Medicare's physician fee schedule calculates payments by raising the budget-neutrality adjustment threshold from $20 million to about $54 million in 2027, with periodic inflation updates. It also requires checking usage estimates for new services against actual data, mandates updates to practice expense cost data at least every five years, and caps year-to-year changes in the payment conversion factor at 2.5%.

Who does it affect?

Doctors, medical practices, and other health care providers who bill Medicare are primarily affected. Medicare beneficiaries, mostly people 65 and older and some people with disabilities, could be indirectly affected.

Why does it matter?

Raising the threshold means smaller spending changes will no longer automatically trigger across-the-board payment adjustments, altering how provider payments are set year to year. The changes are intended to make payment calculations more predictable, though they do not alter patient benefits or eligibility.

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Where does it stand?

  1. IntroducedMar 30, 2026
  2. House committeeYou are here · May 21, 2026
  3. House vote
  4. Senate
  5. The president's desk

Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.

Latest action: — Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 44 - 0.

Data as of October 9, 2026
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