Modifying the conversion factor updates applicable to physicians’ services under the Medicare program

(a) In general Section 1848(d) of the Social Security Act (42 U.S.C. 1395w–4(d)) is amended— (1) in paragraph (1)(A), in the second sentence, by inserting or (21) after paragraph (20); (2) in paragraph (20)— (A) in the header, by striking and subsequent years; and (B) by striking and each subsequent year; and (3) by adding at the end the following new paragraph: (21) Update for 2027 and subsequent years (A) In general For 2027 and each subsequent year, the update to the nonqualifying APM conversion factor established under paragraph (1)(A) is, subject to subparagraph (B), the Secretary's estimate of the percentage increase in the MEI (as defined in section 1842(i)(3)) for the year, less 1 percentage point, and the update to the qualifying APM conversion factor established under such paragraph is the update to the nonqualifying APM conversion factor for the year, increased by 0.5 percentage point. (B) Floor and ceiling on nonqualifying APM conversion factor update In the case that the update to the nonqualifying APM conversion factor for a year as calculated under subparagraph (A) is— (i) less than 25 percent of the Secretary’s estimate of the percentage increase in the MEI (as defined in section 1842(i)(3)) for the year, such update shall be deemed to be equal to 25 percent of such estimate; or (ii) more than 75 percent of such estimate, such update shall be deemed to be equal to 75 percent of such estimate.. (b) Reports The Secretary of Health and Human Services shall, for 2027 and each year thereafter, submit to Congress a report on the updates to the qualifying APM conversion factor and nonqualifying APM conversion factor under section 1848(d) of the Social Security Act (42 U.S.C. 1395w–4(d)) for such year. Such report shall include an analysis of the impact of such updates on Medicare beneficiaries’ access to services under the Medicare program and on the consolidation of physician practices.