House Committee Includes Medicare Payment Reform in Budget Bill

The U.S. House Committee on Energy and Commerce this week reported its section of the federal budget reconciliation bill out of committee. The legislation passed on a 30-24 party line vote after a 26-hour mark-up, a process in which committee members consider changes and amendments. The American College of Radiology® (ACR®) closely monitored the proceedings as the legislative text includes several healthcare provisions. 

The legislation would add $9 billion in new spending to the Medicare Physician Fee Schedule (MPFS) via an inflation-based update to the conversion factor. In 2026, the conversion factor will be updated by 75% of the Medicare Economic Index (MEI) and updated by 10% of MEI every year thereafter. An annual increase to the MPFS based on MEI was one of the issues ACR members advocated in favor of May 7, during Capitol Hill Day.

Numerous provisions attempt to reform the Medicaid program, including but not limited to federal work requirements, a moratorium on state provider taxes, reduced certain federal medical assistance percentages (FMAP), and increased cost sharing for Medicaid expansion adults with incomes between 100% and 138% of the federal poverty level. 

The legislation now advances to the House Committee on the Budget to assemble the Energy and Commerce Committee section in with sections advanced by other committees into one bill for a full House vote. House Speaker Mike Johnson (R-LA) indicated the floor vote will be prior to Memorial Day. Upon passage, the legislation would move to the U.S. Senate for consideration. 

If you have questions, contact Rebecca Spangler, ACR Senior Government Affairs Director.