House Passes H.R. 1, "One Big Beautiful Bill Act," Signaling Major Healthcare Policy Shifts

June 5, 2025 -- On May 22, the House of Representatives narrowly approved H.R. 1, the "One Big Beautiful Bill Act," by a vote of 215-214. This legislation proposes significant reforms to U.S. healthcare policy, with substantial implications for healthcare providers, payers, and patients through changes to Medicaid, the Affordable Care Act (ACA), and Medicare reimbursement. The bill now advances to the Senate, where its provisions are expected to undergo further debate and potential modifications.

Powerback would like to make you aware of potential impact to Medicare Providers.  Key changes in the legislation are: a delay in implementation of the nursing home staffing rule until January 1, 2035; the prevention of the implementation of a separate conversion factor for physicians participating in advanced APMs, a change that was scheduled to take effect in 2026; and modifications to the Medicare conversion factor, which dictates physician reimbursement rates. Beginning in 2026, the conversion factor will be adjusted annually based on 75% of the projected increase in the Medicare Economic Index (MEI). For 2027 and subsequent years, this adjustment will be 10% of the projected MEI change. This significant shift creates a long-term squeeze on provider reimbursement, likely leading to operational tightening, payment disparities, and access concerns, unless offset by other reforms or supplemental payments.

The progression of H.R. 1 will be closely monitored as it moves to the Senate, where further negotiations and amendments are anticipated. Powerback will assess the potential impact of these proposed changes. Reach out to your Senators today to share the impact of this legislation on you and your loved ones!

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