Temporary 2.5% Medicare physician payment increase from the One Big Beautiful Bill Act expires

The One Big Beautiful Bill Act included a one-year 2.5% increase to Medicare physician fee schedule conversion factors for calendar year 2026 — the first meaningful payment increase for physicians in years. That temporary increase expires on December 31, 2026, and absent new legislation, physician payment rates revert to the underlying MACRA-set baseline, which has lagged medical inflation for a decade. The American Medical Association and specialty societies are expected to press Congress for a further extension or a permanent payment reform. Without action, physicians who accepted Medicare patients at 2026 rates would effectively receive a real-dollar pay cut beginning January 1, 2027. Medicare serves 67 million beneficiaries; physicians choosing to limit Medicare patients in response to rate cuts directly affects patient access.