The latest federal budget agreement includes several healthcare provisions supported by the American Medical Association, delivering meaningful updates for physicians and patients. Among the most impactful outcomes is a renewed commitment to telehealth access, along with additional reforms focused on care delivery, physician support, and cost transparency.
1. Medicare telehealth coverage extended for two years
Medicare telehealth flexibilities have been renewed through 2027, restoring continuity of care after a 43-day lapse tied to the 2025 government shutdown. The extension helps ensure Medicare patients can continue accessing care remotely, while stakeholders continue advocating for permanent telehealth authorization.
2. 3.1% Medicare APM bonus restored for physicians
Physicians participating in Medicare alternative payment models will receive a restored 3.1% bonus for one year, strengthening incentives for value-based care and reducing participation barriers.
3. Medicare Diabetes Prevention Program access expanded
For the first time, CDC-recognized virtual diabetes prevention programs will be included on a trial basis through 2029, improving access for Medicare beneficiaries—especially those in rural and underserved areas.
4. Medicare Advantage provider directory accuracy requirements strengthened
Medicare Advantage plans must now maintain accurate, regularly updated provider directories and publicly report directory accuracy, addressing long-standing concerns around “ghost networks.”
5. Acute Hospital Care at Home waiver extended through 2030
The hospital-at-home model has been extended for five years, preserving a physician-led approach that delivers hospital-level care in patients’ homes while improving outcomes and satisfaction.
6. Dr. Lorna Breen Health Care Provider Protection Act extended
Funding for physician mental health and burnout prevention initiatives has been extended through fiscal year 2030, with expanded grant eligibility and required stigma-reduction efforts.
7. Targeted pharmacy benefit manager reforms introduced
New PBM provisions aim to increase transparency, curb abusive rebate practices, and strengthen enforcement against anticompetitive behavior—steps toward lowering prescription drug costs.
Resource: 7 wins for doctors, patients in latest federal budget deal