Sponsor: Sen. Boozman, John (R-AR)7 cosponsorsIntroduced Jul 30, 2026
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In plain English
This bill increases the threshold that limits annual Medicare physician fee schedule adjustments from $20 million to $57.64 million starting in 2028, with inflation adjustments every five years beginning in 2033. It requires the Centers for Medicare & Medicaid Services to reconcile differences between estimated and actual service utilization for certain bundled services by adjusting the following year's payments if the difference exceeds a set percentage of total expenditures. The bill mandates that CMS update the prices and rates of direct cost categories—such as equipment prices—used in payment calculations at least every five years, with all categories updated in the same year. It also caps year-to-year variation in a certain adjustment factor at no more than 2.5 percent annually. Sen. John Boozman [R-AR] introduced the bill with bipartisan cosponsorship.
What’s in the bill (4 sections)
Sec. 2. Updating the budget neutrality threshold
Sec. 3. Budget neutrality corrections relating to estimated
Sec. 4. Timely updates to direct costs used to calculate practice
Sec. 5. Limitation on year-to-year conversion factor variance
Note: the official CRS summary for this bill was written on 2026-07-30, but the bill text was revised on 2026-07-30T04:00:00Z. Provisions may have been added since the summary was written — the section list above reflects the current text.
Where it is in the process
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Introduced
Jul 30
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Senate committee
Jul 30
3
Senate floor
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4
House
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5
Signed
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What happens next: Sits in committee. Needs a markup or favorable report to advance to the Senate floor.
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