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New Federal Law Includes Reforms That Could Impact PM&R Patients and Providers

Jul 03, 2025

Today, the House passed the budget reconciliation bill, H.R.1, which is expected to be signed into law by the President. The legislation includes significant changes to Medicaid with potential consequences for the patients PM&R serves and the delivery of physiatric care. These raise concerns about access to timely, coordinated care for individuals with disabilities, chronic conditions and rehabilitation needs. As noted in Connection, AAPM&R continues to advocate for policies to ensure access to rehabilitation services.

“We are concerned that the new Medicaid policies—particularly reduced funding and added administrative hurdles—will create even more barriers for the patients who rely on us the most,” said Susan Hubbell, MD, FAAPMR, Chair of the Health Policy, Practice and Advocacy Committee.

Your Academy has consistently advocated for Congress to ensure access to care and community inclusion. Just last May, your Academy was on the Hill advocating for priority issues.

“This legislation underscores the need for continued advocacy on behalf of our members, our patients and our specialty,” added said Dr. Hubbell. “Our Academy will be working diligently to monitor implementation and ensure PM&R voices are heard and that rehabilitation patients are not left behind. We will continue to advocate for annual cost of living adjustments in physician Medicare reimbursement.”

While a temporary increase to the Medicare physician payment conversion factor in 2026 is included, the legislation does not implement a sustainable, long-term update mechanism that accounts for practice cost inflation or ensures continued access to specialty care.

AAPM&R has been advocating for years for Congress to address the instability in the Medicare physician fee schedule to ensure continued patient access and physician practice viability. We will continue working to advance the health policy priorities that matter to PM&R physicians and will provide updates as they occur.

Take Action Now!

We remain committed to advocating for a sustainable Medicare system that values rehabilitation medicine and will continue to monitor. We encourage all PM&R physicians to:

If you have questions or wish to share your insights, please contact our team at healthpolicy@aapmr.org. Thank you for your continued commitment to your patients and to the specialty of PM&R.