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Tuesday, Jul 15 2025

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CMS Proposes 2.5% Medicare Doctor Pay Rate Increase In 2026

Separately, CMS is proposing to start a competitive bidding program for medical goods such as glucose monitors and insulin pumps, Modern Healthcare reports. Also: Rural hospitals look to add services as a potential way to weather the looming cuts.

The base Medicare rate for doctors would rise 2.5% in 2026 under a proposed rule the Centers for Medicare and Medicaid Services published Monday. President Donald Trump and Congress mandated this one-year boost to physician reimbursement in the tax bill that became law this month. That same statute offers a higher increase for doctors participating in alternative payment models. (Early, 7/14)

Sellers of certain types of medical equipment for Medicare patients may find themselves squeezed by a Trump administration proposal to change how contracts are awarded. A rule proposed by the Centers for Medicare and Medicaid Services seeks to start a competitive bidding program for products covered by Medicare such as glucose monitors and insulin pumps as well as those for urological, tracheostomy and ostomy supplies. Currently, that equipment is paid for using set fee schedule rates established by CMS. (Dubinsky, 7/14)

Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. on Monday refuted the existence of Medicaid cuts due to President Trump鈥檚 鈥渂ig, beautiful bill.鈥 鈥淔irst of all, there鈥檚 no cuts on Medicaid. There is a 鈥 there鈥檚 a diminishment of the growth rate of Medicaid, which is bankrupting our country. And by the way, the national debt is also a determinant, a social determinant, of health,鈥 Kennedy told Fox Business Network鈥檚 Larry Kudlow on his show. (Suter, 7/14)

Rural hospitals are hopeful they can add rather than reduce services to help soften the blow from looming Medicaid and Medicare cuts. ... If rural providers cannot recruit physicians, lean more heavily on philanthropic donors or find other ways to reduce their reliance on Medicaid and Medicare reimbursement to get ahead of cuts in the law, hospitals will be forced to pare back services or close their doors, industry observers said. (Kacik, 7/14)

Government-run health care programs fueled the rise of Centene Corp., but cuts to federal assistance could cause it to slide. Centene, which moved to Clayton in 1997, has grown to be the largest Medicaid managed care provider in the country. And it鈥檚 the largest carrier in the Affordable Care Act marketplace, created by President Barack Obama鈥檚 signature health care law. (Suntrup, 7/14)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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