2026 PFS Update, Provider Tax Phase Down, $25B Rural Fund In Senate Reconciliation Text

The final reconciliation bill senators are set to begin voting on this weekend includes several changes from the Senate’s first draft, including a 2.5% increase for Medicare provider pay in 2026, a delayed timeline for the Medicaid provider tax phase down and state direct payment cap, and a new $25 billion rural hospital fund, among other changes -- but providers and beneficiary advocates say millions of people’s health care coverage is at stake and they’re demanding Congress start over on the bill.