Final budget bill may mean 4% Medicare sequester, fewer covered patients
Effective Jul 17, 2025
Published Jul 21, 2025
Last Reviewed Jul 17, 2025
The budget bill signed into law on July 4 adds a 2.5% raise to the physician fee schedule (PFS). But because the law increases the deficit, other laws previously passed by Congress mandate an increase in the sequestration cuts to Medicare revenue from the current 2% to 4% — and potentially higher — unless a new law is passed to cut it off. Other impacts on Medicare practices, including a reduction in covered patients, also are expected.
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