Advocacy & Practice Updates — Advocacy & Practice

President's Proposed Budget Calls for Modest Physician Payment Update in 2025

This week, the Biden Administration released its FY 2023 budget proposal and included a recommendation that Congress modify MACRA to speed up statutory Medicare conversion factor increases incrementally. Currently, MACRA provides no update to physician payment, but in 2026 participants in Advanced Alternative payment models (APMs) would receive annual 0.75% updates to the conversion factor, while non participants would receive 0.25% updates. The budget proposal seeks to begin those conversion factor updates one year earlier in 2025. The President’s annual budget proposal has no force of law and is sent to Congress to express the administration’s position on spending and policy.