Adjusts how Medicare sets physician payment rates by raising a budget neutrality threshold, correcting for estimated service use, refreshing practice cost data every five years, and capping year-to-year changes in the physician conversion factor at 2.5 percent.

• Raises the budget neutrality threshold from $20 million to $54.3 million for 2027, then indexes it to physician service cost growth beginning in 2032 and every fifth year after.
• Requires the Secretary to adjust the physician conversion factor two years later when actual use of a bundled service differs from the estimate by more than 0.1 percent of total physician spending.
• Requires updates to clinical staff wages, medical supply prices, and equipment prices at least every five years, made in the same year for all categories, after consulting physician specialty societies.
• Bars budget neutrality adjustments from moving the physician conversion factor more than 2.5 percent up or down from the prior year.

• Ways and Means Committee (House)
• Energy and Commerce Committee (House)

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