H.R. 6371House118th Congress (2023-2025)In Committee

Provider Reimbursement Stability Act of 2023

Introduced November 13, 2023

AI-Generated Summary

Updated January 20, 2026 at 1:01 PM UTC

The Provider Reimbursement Stability Act of 2023 changes how Medicare updates the physician fee schedule. It raises the budget‑neutrality amount, requires the government to compare estimated to actual utilization and adjust payments, mandates updating direct cost inputs every five years, and caps year‑to‑year changes in the conversion factor to 2.5 %.

Key Provisions

  • Increases the budget‑neutrality threshold from $20 million to $53 million for 2025 and ties later years to the previous year’s amount, with an indexing rule every five years after 2030.
  • Adds a process for the Secretary to compare estimated utilization with actual utilization after each adjustment year (starting 2025) and make payment corrections if the estimate caused a different budget‑neutrality adjustment.
  • Requires the Secretary to update prices for clinical staff wages, medical supplies, and equipment at least every five years, consulting physician specialty societies.
  • Limits the conversion factor used to calculate physician payments so it cannot change more than 2.5 % from the prior year; if it would, the adjustment is capped at that level.
  • Provides special rules for 2025 and for the transition to multiple conversion factors in 2026.

Legislative Activity

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5 earlier actions
HouseCommittee Latest Action

Referred to the Subcommittee on Health.

December 17, 2024

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HouseIntro Referral

Introduced in House

November 13, 2023

HouseIntro Referral

Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

November 13, 2023

HouseCommittee

Referred to the Subcommittee on Health.

November 13, 2023

HouseCommittee

Subcommittee Consideration and Mark-up Session Held

November 15, 2023

HouseCommittee

Forwarded by Subcommittee to Full Committee by Voice Vote.

November 15, 2023

HouseCommittee

Referred to the Subcommittee on Health.

December 17, 2024

Floor Debate

9 members

What members said about H.R. 6371 on the floor

6 Republicans3 Democrats
Gregory F. Murphy
Rep. Gregory F. MurphyR-NC-3 · Jan 17, 2024

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material. Mr. Speaker, I yield myself such time as…

Jimmy Panetta
Rep. Jimmy PanettaD-CA-19 · Jan 17, 2024

Mr. Speaker, I rise today to talk about a very pressing issue that not only have we heard about throughout our country but especially in the 19th Congressional District of California, which I…

Michael C. Burgess
Rep. Michael C. BurgessR-TX-26 · Jan 17, 2024

Mr. Speaker, I thank Mr. Murphy for bringing us together tonight. I am here tonight not just because I am a Member of Congress from the 26th Congressional District, but I am also a doc. I practiced…

John Joyce
Rep. John JoyceR-PA-13 · Jan 17, 2024

Mr. Speaker, I thank the gentleman for yielding and for holding this Special Order to discuss the issues of the impact of the Medicare cuts. In rural communities, like where I serve in south central…

Richard McCormick
Rep. Richard McCormickR-GA-6 · Jan 17, 2024

Mr. Speaker, I thank the gentleman for yielding. Mr. Speaker, it is rare in this Chamber, especially recently, that you find a bipartisan effort, especially one that is all about the people. In this…

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Ami Bera
Rep. Ami BeraD-CA-6 · Jan 17, 2024

Mr. Speaker, over 30 years ago I graduated from medical school. As you are kind of figuring out what you want to do as a resident, I chose to become a primary care internal medicine doctor. The…

Kim Schrier
Rep. Kim SchrierD-WA-8 · Jan 17, 2024

Mr. Speaker, I rise today to speak about fair physician reimbursement to urge my colleagues to immediately address the physician fee schedule cuts that went into effect on January 1, and in a broader…

Brad R. Wenstrup
Rep. Brad R. WenstrupR-OH-2 · Jan 17, 2024

Mr. Speaker, America and Members of Congress really need to understand the impact these recent cuts to the Medicare physician fee schedule have on patient access to healthcare across the country. The…

Diana Harshbarger
Rep. Diana HarshbargerR-TN-1 · Jan 17, 2024

Mr. Speaker, I rise today to address the rising cost of healthcare due to inflation and the need to address Medicare physician payments to ensure quality care for our seniors. Adjusting for inflation…

Bill Text

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Introduced in HouseIssued November 13, 2023

I

118th CONGRESS

1st Session

H. R. 6371

IN THE HOUSE OF REPRESENTATIVES

November 13, 2023

Mr. Murphy (for himself, Mr. Burgess, Mr. Wenstrup, Ms. Kelly of Illinois, Mr. Bucshon, Mr. Van Drew, Mrs. Miller-Meeks, Mr. Harris, Mr. Babin, Mr. Joyce of Pennsylvania, Mr. Jackson of Texas, Mr. McCormick, Mr. Ferguson, Mr. Dunn of Florida, and Mr. Carter of Georgia) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To provide for certain adjustments to the physician fee schedule under the Medicare program.

1.

Short title

This Act may be cited as the Provider Reimbursement Stability Act of 2023.

2.

Updating the budget neutrality threshold

Section 1848(c)(2)(B)(ii)(II) of the Social Security Act (42 U.S.C. 1395w–4(c)(2)(B)(ii)(II)) is amended—

(1)

by striking Subject to and inserting the following:

(aa)

In general

Subject to

;

(2)

in item (aa), as inserted by subparagraph (A), by striking $20,000,000 and inserting the amount specified in item (bb) for such year; and

(3)

by adding at the end the following new items:

(bb)

Amount specified

For purposes of item (aa), subject to item (cc), the amount specified in this item is—

(AA)

for years before 2025, $20,000,000;

(BB)

for 2025, $53,000,000; and

(CC)

for 2026 and each subsequent year, the amount specified in this item for the preceding year.

(cc)

Indexing limitation on annual adjustments

For 2030 and every subsequent fifth year, the Secretary shall increase the amount specified in item (bb) for such year by the cumulative increase in the MEI (as defined in section 1842(i)(3)) applicable to physicians’ services over the 5-year period ending on the last day of the preceding year.

.

3.

Budget neutrality corrections for overestimates and underestimates in utilization

(a)

In general

Section 1848(c)(2)(B) of the Social Security Act (42 U.S.C. 1395w–4(c)(2)(B)) is amended by adding at the end the following new clause:

(vii)

Budget neutrality corrections for overestimates and underestimates in utilization

(I)

In general

In the case of a budget neutrality adjustment applied pursuant to clause (ii)(II) for an adjustment application year (as defined in clause (viii)(I)) beginning with 2025, with respect to an adjustment to relative value units made under clause (ii)(I), that is determined using estimated utilization (as defined in clause (viii)(III))—

(aa)

the Secretary shall, by not later than September 1 of the subsequent year—

(AA)

compare such estimated utilization to actual utilization occurring during such adjustment application year with respect to the adjustment to the relative value units made under clause (ii)(I); and

(BB)

if applicable, determine the extent to which, if any, the difference between the estimated utilization and such actual utilization affected the amount of such budget neutrality adjustment applied for such adjustment application year; and

(bb)

in the case that the Secretary determines under subclause (I)(bb) that the difference between the estimated utilization and such actual utilization affected the amount of the budget neutrality adjustment applied for such adjustment application year, the Secretary shall adjust the amount of payment made under this section for services furnished during the adjustment correction period (as defined in clause (viii)(II)) with respect to such year by such amount as determined necessary by the Secretary to reconcile the difference (which may be positive or negative) between—

(AA)

the budget neutrality adjustment that had been applied for such application adjustment year, using the estimated utilization; and

(BB)

the budget neutrality adjustment that would have been applied for such year if such adjustment had been calculated using such actual utilization.

(II)

Definitions

For purposes of this clause:

(aa)

Adjustment application year

The term adjustment application year means, with respect to an adjustment to relative value units made under clause (ii)(I) for which a budget neutrality adjustment under clause (ii)(II) is required, the year for which such adjustments are applied.

(bb)

Adjustment correction period

The term adjustment correction period means, with respect to an adjustment application year, the second year beginning after such adjustment application year.

(cc)

Estimated utilization

The term estimated utilization means, with respect to an adjustment to relative value units made under clause (ii)(I), an estimate of utilization associated with such adjustment used for purposes of applying clause (ii)(II).

.

(b)

Nonapplication of budget neutrality to reconciliation adjustments

Section 1848(c)(2)(B) of the Social Security Act (42 U.S.C. 1395w–4(c)(2)(B)) is amended—

(1)

in clause (iv)—

(A)

in subclause (V), by striking and at the end;

(B)

in subclause (VI), by striking the period and inserting ; and; and

(C)

by adding at the end the following new subclause:

(VII)

clause (vii)(I)(bb) for an adjustment correction period shall not be taken into account in applying clause (ii)(II) with respect to such period.

; and

(2)

in clause (v), by adding at the end the following new subclause:

(XII)

Reductions attributable to an adjustment correction

For an adjustment correction period, reduced expenditures attributable to application of clause (vii)(I)(bb) with respect to such period.

.

4.

Timely updates to direct costs used to calculate practice expense RVUs

Section 1848(c)(2)(B) of the Social Security Act (42 U.S.C. 1395w–4(c)(2)(B)), as amended by section 3, is further amended by adding at the end the following new clause:

(viii)

Timely updates to direct costs used to calculate practice expense relative value units

(I)

Simultaneous updates to direct cost inputs at least once every 5 years

The Secretary shall, not less often than every 5 years, update the prices and rates, as applicable, for each of the direct costs inputs described in subclause (II) used in the methodology for calculating the practice expense relative value units under this subsection for physicians’ services. Updates made pursuant to the previous sentence shall be made in the same year for all direct cost inputs described in such subclause.

(II)

Direct costs input categories described

For purposes of this clause, the direct costs inputs described in this subclause are clinical staff wage rates, prices of medical supplies, and prices of equipment.

(III)

Consultation

In making the updates under this clause, the Secretary shall consult with relevant stakeholders, including physician specialty societies.

.

5.

Limitation on year-to-year conversion factor variance

Section 1848(c)(2)(B) of the Social Security Act (42 U.S.C. 1395w–4(c)(2)(B)), as amended by sections 3 and 4, is further amended— by adding at the end the following new clause:

(ix)

Limitation on conversion factor variance

(I)

In general

In the case that application of clause (ii)(II) for a year (beginning with 2025) would result in a conversion factor established under subsection (d) for such year, not taking into account any adjustment provided under such subsection, to vary by more than 2.5 percent compared to such factor so established for the preceding year (in this subclause referred to as the preceding year’s conversion factor), the Secretary shall—

(aa)

if such application would result in a decrease in such conversion factor, modify any budget neutrality adjustment applied to such conversion factor pursuant to such clause such that such conversion factor is decreased by 2.5 percent, not taking into account any adjustment provided under such subsection, compared to the preceding year’s conversion factor; and

(bb)

if such application would result in an increase in such conversion factor, modify any budget neutrality adjustment applied to such conversion factor pursuant to such clause such that such conversion factor is increased by 2.5 percent, not taking into account any adjustment provided under such subsection, compared to the preceding year’s conversion factor.

(II)

Special rule for 2025

In applying subclause (I) with respect to the conversion factor established under subsection (d) for 2025, in determining whether the application of clause (ii)(II) for such year would result in such conversion factor varying by more than 2.5 percent compared to such factor so established for 2024, the Secretary shall take into account the increase to such conversion factor so established for 2024 provided under subsection (t).

(III)

Clarification relating to transition to multiple conversion factors

For 2026, in applying subclause (I) with respect to the qualifying APM conversion factor (as described in subsection (d)(1)(A)) and the nonqualifying APM conversion factor (as so described) established under subsection (d) for such year, each reference in such subclause to the preceding year’s conversion factor shall be deemed to be a reference to the single conversion factor (as described in subsection (d)(1)(A)) so established for 2025.

.