The newly passed federal government funding package includes a bipartisan package of health care proposals that includes important parts of the AMA’s policy agenda, from telehealth to burnout and prescription-drug pricing. Specifically, the budget deal—which helped to avoid a protracted federal government shutdown as seen in the fall—includes these eight big wins for patients and physicians.
Medicare telehealth coverage renewed for two years. Following the disruptive, 43-day lapse during the 2025 government shutdown, this extension helps restore continuity of telehealth services for Medicare patients. The AMA strongly supports this extension and continues to advocate permanent authorization of Medicare telehealth flexibilities. Learn more with the AMA about how telehealth drives care improvement and saves money.
3.1% bonus restored for physicians participating in Medicare alternative payment models (APMs). The bonus, which expired in 2024, will be restored for one year. This provision strengthens physician participation in APMs and value-based care by restoring meaningful incentives and reducing barriers to entry.
Access to the Medicare Diabetes Prevention Program expanded. Accomplished by incorporating AMA-endorsed legislation, for the first time Centers for Disease Control and Prevention-recognized virtual diabetes prevention programs will be included in the expanded model on a trial basis from through Dec. 31, 2029. This expansion addresses longstanding access barriers created by in-person participation requirements and improves access for Medicare beneficiaries in rural and underserved communities.
Medicare Advantage plans required to maintain accurate, regularly updated provider directories and publicly report directory accuracy. The problem of so-called ghost networks has persisted for a long time, with the AMA calling for action to address it and give patients to reliable information on which physicians are in-network for Medicare Advantage patients.
Acute Hospital Care at Home waiver extended for five years. This extension, which runs through 2030, preserves a proven, physician-led model that delivers hospital-level care safely in the home, improving outcomes and patient satisfaction. Find out how hospital at home saves lives and money.
The Dr. Lorna Breen Health Care Provider Protection Act extended for five years. The federal budget deal continues funding for this effort through fiscal year 2030, mandates annual stigma-reduction campaigns and broadens grant eligibility to address administrative burden. The AMA has supported this program since its inception and strongly supports its reauthorization. As the leader in physician well-being, the AMA is reducing physician burnout by removing administrative burdens and providing real-world solutions to help doctors rediscover the Joy in Medicine®.
Targeted pharmacy benefit manager (PBM) reforms introduced to enhance transparency, curb abusive Medicare drug rebate practices, and strengthen enforcement against anticompetitive behavior. These provisions represent tangible progress toward lowering prescription-drug costs and improving fairness in the drug supply chain for patients and physicians. Learn more with this Leadership Viewpoints column, “Unchecked power in PBM industry puts patients at risk of harm,” by AMA President Bobby Mukkamala, MD.
More funding to address preterm births and maternal health. The budget deal reauthorizes the PREEMIE Reauthorization Act to expand federal research on preterm birth and improve outcomes for premature infants, as well as the Preventing Maternal Deaths Act. The latter measure increases authorized funding to $100 million annually through 2030, expands the scope of state maternal mortality review committees, and directs federal agencies to more regularly disseminate best practices. The AMA endorses both bills. Find out more about the AMA’s commitment to reversing maternal mortality.
In an AMA statement released in January when the bipartisan agreement on these health care reforms first emerged, David H. Aizuss, MD, chair of the AMA Board of Trustees, lauded lawmakers’ effort.
“The AMA commends congressional leaders for finding common ground,” he said. “As physicians, we know that the best results come from focused attention on what is best for patients. That’s what happened here.”
“To get the finish line, individual negotiators didn’t get everything they wanted, perhaps, yet good policy emerged from the negotiations,” said Dr. Aizuss, an ophthalmologist in Calabasas, California.
“These proposals,” he added, “will benefit our patients in their everyday encounters with physicians. Whether it’s telehealth, or diabetes, or Medicare directories, these policies have real-world, beneficial impacts.”
During uncertain times, one thing is certain—the AMA is fighting for physicians. The AMA is focused on addressing issues important to doctors so that they can focus on what matters most—patients.
Hundreds of physicians will gather in Washington Feb. 23–25 for the AMA National Advocacy Conference. Key topics covered at this year's conference will include:
- Reforming Medicare payment.
- Fixing prior authorization.
- Food as medicine.
- Protecting access to care in Medicaid.
Learn more and register now. Also, visit AMA Advocacy in Action to dive deeper on the advocacy priorities the AMA is actively working on.
Editor’s note: This story was updated Feb. 4 to incorporate legislative details on maternal and preterm infant health that were unavailable at deadline.
