Medicare ties physician pay to inflation, removing cost controls
H.R. 6160 — Strengthening Medicare for Patients and Providers Act · Filed by Raul Ruiz (D-CA) · 12 cosponsors · Introduced Nov 19, 2025 · Referred to committee
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What it does
This bill changes how Medicare pays physicians starting in 2026. Instead of using a complex formula that has produced payment cuts, it ties physician payment updates directly to the Medicare Economic Index (MEI), a measure of healthcare cost inflation. Physicians benefit from more predictable, inflation-linked payment growth; Medicare beneficiaries may face higher premiums or reduced access if physician supply tightens.
Why we flagged it
The bill directly addresses the long-standing 'doc fix' problem by replacing a payment-cut formula with inflation-indexed updates. This is a structural reform to the Medicare physician fee schedule, not a narrow carve-out or subsidy.
What the text implies
- Eliminates the two-conversion-factor system (separate rates for different service types), consolidating to a single rate — a structural simplification that may affect relative payment levels across specialties.
- Ties physician payments to MEI rather than sustainable growth rate (SGR) or other cost-control mechanisms, removing a brake on Medicare physician spending growth.
The full analysis lists 4 implications of this text.
Who stands to gain
physicians and medical practices; physician-owned medical groups; healthcare staffing and recruitment firms