Medical societies and experts have mixed reactions to the passing of H.R.1, also known as the One Big Beautiful Bill Act.
The U.S. House of Representatives passed the Senate’s version of the bill on July 3, which calls for Medicaid cuts and an increase to the Medicare Physician Fee Schedule (MPFS) among other budgetary updates. President Donald Trump signed the bill into law on July 4, the deadline he gave Congress for the bill's passing.
"We look forward to working with the Centers for Medicare & Medicaid Services, regulators, lawmakers and other stakeholders to arrive at a sensible long-term physician payment plan that supports practices’ ability to continue to provide care in their communities and enables greater patient access to lifesaving care," said Cynthia Moran, executive vice president of government relations and health policy for the American College of Radiology (ACR).
Medical societies have lauded the 2.5% increase to the MPFS for the 2026 calendar year. However, it does not include previously House-passed language that tied Medicare updates to the Medicare Economic Index (MEI). The ACR added that the bill contains "concerning" Medicaid reductions. Experts project that between 11 million and 17 million people will lose their health insurance status under the terms of the bill.
Tom Greeson, a partner in the Reed Smith Life Sciences Health Industry Group, said that the treatment of physician payments by the Senate "left radiologists with uncertainty" with the one-time bump up Medicare physician payments for 2026.
"The House version would have updated Medicare payments to physicians next year at 75% of the MEI and small guaranteed increases thereafter," Greeson told AuntMinnie. "Beginning in 2027, the MPFS conversion factor would have been increased annually by 10% of the MEI."
Sandy Coffta, vice president of client services at Healthcare Administrative Partners, said that although the inflationary adjustment was rescinded in June, the MPFS increase "offers at least a modest improvement."
"However, it is likely that the Medicaid cuts will wipe out any gains from the Medicare fee increase," she told AuntMinnie.
The Medical Group Management Association (MGMA) meanwhile expressed criticism toward the planned Medicaid cuts, saying that medical groups and hospitals will be left "picking up the enormous tab."
"With these historic Medicaid cuts, dedicated physicians and medical practices committed to providing care in our country's most underserved areas will face growing financial burdens as they are forced to offer more and more uncompensated care," the MGMA stated.
The association added that even with the one-year MPFS increase, physician practices are still dealing with 2025’s 2.83% cut.
"If the administration's commitment is to make America healthy, it must work with Congress to ensure both practices and physicians have the wherewithal to continue providing healthcare for all Americans," the MGMA stated.
However, some are expressing optimism toward the opportunities highlighted by bill proponents. AdvaMed, the Medtech Association, said the bill will "without question" create a pro-growth environment that will support the U.S. medtech industry’s position globally.
"The research and development [R&D] and capital investment expensing provisions, for example, will spur even greater medtech R&D from our fast-moving innovators," said AdvaMed President and CEO Scott Whitaker. "Expansion of the Qualified Small Business Stock [QSBS] will support early-stage companies trying to raise capital and hire talent, which is critical to getting groundbreaking medtech developments into the hands of doctors and their patients."
Whitaker added that supporting policies that lower business-related costs while opposing policies that raise costs are needed to make sure that the medtech industry is expanding the country’s global leadership role.
"We look forward to continuing our work with the President and his administration and leaders on both sides of the Capitol who understand this vital policy dynamic," he said.
