Published 7/30/2025
After months of negotiations, Congress passed the One Big Beautiful Bill Act (H.R. 1) in a party-line vote, and President Donald Trump signed it into law on Friday, July 4.
Medicare updates
The final bill includes a one-year payment increase under the Medicare Physician Fee Schedule for 2.5% to begin Jan. 1, 2026. AAOS, American Association of Neurological Surgeons, Congress of Neurological Surgeons, and American Society of Anesthesiologists worked tirelessly with champions on Capitol Hill to secure the inclusion of this provision, which was initially excluded from the Senate bill. AAOS led 75 healthcare organizations in sending a letter to lawmakers urging them to include this provision to address the broken Medicare physician payment system.
Additional provisions and AAOS response
Although AAOS welcomes this legislative fix to the Medicare Physician Fee Schedule, it also recognizes that the bill includes other changes of concern to the membership, including provisions that impact today’s physician workforce and the next generation of orthopaedic surgeons.
For example, H.R. 1 reduces federal spending on the Medicaid program by imposing work requirements for certain beneficiaries, requiring states to conduct increased eligibility checks and tighten eligibility standards, and reducing the amount of “provider taxes” states can impose on healthcare institutions. The final bill also eliminates the Graduate PLUS student loan program and sets a $200,000 lifetime cap on federal graduate student loans for professional programs, including medical schools.
As implementation of the bill begins over the coming months, AAOS will continue to monitor the effects of this legislation on the membership and engage with lawmakers on future legislative opportunities to improve patients’ access to high-quality musculoskeletal care. To stay up to date on the latest changes impacting muculoskeletal care, follow along via the AAOS Advocacy Now e-newsletter.