Lawmakers tussle over a federal budget bill that includes a Medicare rate increase for clinicians starting in 2026.

The massive reconciliation bill that passed the House of Representatives in a 215-214 vote May 22 includes provisions to increase Medicare physician payments by 2.25% in 2026 and implement ongoing annual inflation-based payments thereafter.

Physicians would see higher Medicare rates in 2026 and beyond, but reimbursements under alternative payment models would decrease.

Republicans are proposing cuts to Medicaid as part of President Donald Trump's spending bill. Some Americans are worried the cuts will cause them to lose their coverage.

Medicare could face nearly $500 billion in cuts over the next decade under Republicans’ “One Big Beautiful Bill Act,” which also proposes significant reductions to Medicaid and other healthcare programs.

Senate Majority Leader John Thune (R-S.D.) has begun meeting privately with Senate Republicans who are threatening to derail President Trump’s “big, beautiful bill” over what they fear could be substantial cuts to Medicaid.