Recall that this month, the One Big Beautiful Bill was passed, which is introducing changes in highly significant areas affecting citizens. Regarding Medicare, the legislation enacts cuts, adjusts physician compensation models, and alters beneficiaries’ savings options. The OBBBA makes sweeping changes to the entire U.S. immigration system regarding enforcement, fees, and access to services like SNAP and health care services like Medicaid, the Children’s Health Insurance Program (CHIP), and Medicare.
Starting in 2026, increases will be based on the Medicare Economic Index
Medicare is a federal health insurance program for people 65 and older and some people under 65 with certain disabilities and conditions. The One Big Beautiful Bill, implemented by the Trump administration, revises the annual updates to the physician fee schedule. Starting in 2026, increases will be based on the Medicare Economic Index. The first year sees a 75% increase tied to the MER. Subsequent years limit adjustments to just 10% annually.
On July 4, the White House issued its official statement on the OBBBA. It read as follows: Today, President Donald J. Trump officially signed The One Big Beautiful Bill into law -a once-in-a-generation piece of legislation that makes good on his campaign promises and puts America First.”
It will restrict access to health care for legally present immigrants, such as refugees and asylees
Some of the changes in the One Big Beautiful Bill Act will affect health care and restrict access to health care for legally present immigrants, such as refugees and asylees. Other changes include a reduction in eligibility for Refugee Medical Assistance. Only citizens, permanent residents, and treaty-designated groups retain coverage. An 18-month transition period applies after enactment.
People who were eligible for or enrolled in Medicare at the time of the enactment of the Medicare and Medicaid Benefits Act (MBBA) can remain on Medicare for an additional 18 months, as previously explained. The new eligibility requirements will apply to these individuals in 18 months, or in January 2027.
“The OBBB was the largest tax cut for middle class and working families in American history”
“The One Big Beautiful Bill was the largest tax cut for middle class and working families in American history. The White House looks forward to continue working with our friends on Capitol Hill to define what this historic piece of legislation means for Americans across the country,” White House press secretary Karoline Leavitt has said recently
Other sectors that will be affected are older working people enrolled in Medicare Part A. They can now fund their HSAs while maintaining high-deductible health plans. Previously, Part A enrollment blocked contributions. This change for 2026 helps employed beneficiaries plan for their medical expenses.
Physicians participating in the APM program could experience a substantial reduction in their income
Medical associations raise concerns about financial sustainability. This policy significantly limits the growth of Medicare costs. Physicians participating in the APM program could experience a substantial reduction in their income. Industry analysts point out that this could discourage adoption of the model.
Regarding rural hospitals, centers closed between 2014 and 2020 will be able to reopen as Rural Emergency Hospitals. This option will be available starting in January 2027. The measure focuses on areas with a shortage of medical services. The technical requirements are detailed in the regulatory annexes.
Those affected are advised to stay informed of all developments, as the situation has changed in just a month and will change in the coming months. Always check the official government websites for information.
