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Mega House budget bill boosts doc pay, threatens Medicaid

May 7, 2025

House Republicans unveiled new legislation this week that represents a mixed bag for physicians and radiation oncology, as it would infuse Medicare physician payments with nearly $9 billion while tying future payments to medical inflation, but at the same time reduce Medicaid spending by more than $700 billion. The House Energy and Commerce Committee will consider the massive budget bill crafted by Republican leadership at a hearing this week, but it’s unclear whether all Republicans will unify around the bill given the Medicaid cuts, as well as other spending and tax provisions.

ASTRO is grateful for Republican physicians in Congress, including ASTRO champion John Joyce, MD, for leading the charge to address Medicare physician payments in the legislation.  The Medicare payment provisions would provide physicians with a significant increase by adjusting the physician fee schedule conversion factor for 2026 to 75% of the Medicare Economic Index (MEI) and for 2027 and beyond to 10% of the MEI increase for the year.  While not addressing the cuts in 2025, the provisions are designed to provide a boost in 2026 and more stable footing to advocate for better updates for 2027 and beyond.  This provision would replace current law updates of .75% for those in alternative payment models and .25% for those not in alternative payment models.

In response to the Medicaid cuts, ASTRO joined patient advocacy groups and the Association for Clinical Oncology in a statement opposing deep reductions that would directly impact cancer patients, including children.  Noting that Medicaid is a lifeline for people with cancer, the May 6 statement explains the vital importance of Medicaid and how spending cuts under consideration could have serious impacts on screening, diagnosis, treatment and survivorship.  A wide swath of the health care community is expressing concerns about potential Medicaid cuts as Republican leadership pursues massive government spending reductions and looks to make recent tax cuts permanent.

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