Policy Snapshot
May 18, 2026
This week, Congress will hold hearings on the Medicare Physician Fee Schedule. This is an ideal opportunity to urge them to support the bipartisan Provider Reimbursement Stability Act (H.R. 8163), introduced by Reps. Greg Murphy, MD (R-NC) and Tom Suozzi (D-NY). The bill would modernize Medicare clinician payments, update outdated budget neutrality rules, and bring greater stability to practices and patients.
If passed, the legislation would:
- Raise the budget neutrality threshold from $20 million to $54.3 million, with periodic indexing to the Medicare Economic Index (MEI). Currently, budget neutrality dictates that if spending in one area exceeds $20 million, it must be offset by other health- care costs. The $20 million budget-neutrality threshold has remained unchanged since the early 1990s and has never been adjusted for inflation.
- Limit year-to-year variance in physician payments to no more than 2.5%, helping practices plan for the future.
- Require the Department of Health and Human Services to refine budget neutrality adjustments using claims data for newly unbundled codes.
- Update key inputs for practice expenses, including clinical wages, medical supplies, and equipment, at least every five years.
Together, these changes are designed to make Medicare payments more predictable, data-driven, and aligned with the realities of delivering care.
Contact your members of Congress and urge them to support H.R. 8163 today.