Congress passes one-year increase to Medicare physician payment

Congress has passed a one-year 2.5% increase for the 2026 Medicare Physician Fee Schedule to account for sustained cuts as Congress continues to work toward long-term payment reform.
The temporary pay increase is a first step in stemming the tide of cuts physicians have faced for many years. However, the AADA will continue to advocate for Congress to do more to protect patient access to physician care.
AADA President Susan C. Taylor, MD, FAAD, has personally advocated on behalf of the specialty in Washington, D.C. for Medicare payment reform by participating in a roundtable hosted by the House Republican Doctors Caucus, as well as a SkinPAC events with 20 Democratic members of Congress and a visit with the Congressional Black Caucus.
The AADA worked with other specialty societies in a coalition to get Medicare physician payment action included in this budget reconciliation legislation.
In April, the AADA joined 14 of the largest national medical societies and demanded that Congress take urgent action on Medicare physician payment reform as it began putting together the reconciliation legislation, which resulted in the insertion of a Medicare physician payment provision that was tied to a portion of the Medicare Economic Index (MEI).
In June, the AADA and 74 other national specialty societies sent a letter to Senate Republican leadership urging them to include Medicare payment reform when the Senate considered the reconciliation package. This direct pressure resulted in the inclusion of the one-year physician pay bump after the Senate had initially removed the House’s MEI policy.
The AADA is not done fighting for annual inflation-based updates and will continue to work with federal lawmakers to ensure a stable and sustainable payment system for physicians and the patients they serve.