Zotec Advocacy Update: Legislative Update for Q2

June 10, 2025

Zotec Advocacy Update. With so much shifting at the federal level, it’s no surprise that many clinicians are feeling uncertain about what’s ahead. That’s exactly why Zotec Partners is leaning in to help. Mark Isenberg, EVP of Healthcare Advocacy and Ed Gaines, JD. CCP., VP of Regulatory Affairs & Industry Liaison, have attended many tradeshows and industry events this spring sharing some much-needed clarity on what’s happening in Congress and across key regulatory agencies.

Zotec Advocacy continues to stand out as a unique and valuable resource. The company has built a dedicated team focused entirely on educating and engaging clinicians in the legislative process. This ongoing investment highlights Zotec’s strong commitment to supporting its clients and championing their interests both at the state and federal levels. In a time where so much feels unpredictable, having a partner who’s keeping an eye on the big picture, and making sure you’re in the loop, can make all the difference.

Medicare Physician Payment Changes in Budget Reconciliation Bill

On May 22, 2025, the House passed a pivotal budget reconciliation bill that takes a long-overdue step toward stabilizing Medicare physician payments. For the first time in a decade, Congress is proposing a permanent update to the Medicare Physician Fee Schedule—tying payment increases to the Medicare Economic Index (MEI), with 75% of the MEI applied in 2026 and 10% annually thereafter. However, while the changes to the physician fee schedule and MEI represent meaningful progress, they’re only a first step toward achieving sustainable payment reform.

Meaningful Start, Not the Finish Line

The language in the reconciliation bill does not reverse the harmful -2.83% cut to physician payments that took effect on January 1, 2025. When adjusted for inflation, Medicare reimbursement for physicians has dropped by 33% since 2001—putting serious financial pressure on independent practices and putting patient access to care at risk, particularly in rural and underserved communities.

Recently, Sen. Marshall (R-KS) introduced S. 1640, the Medicare Patient Access and Practice Stabilization Act of 2025—the companion bill to H.R. 879—which would increase Medicare physician reimbursement by 8.51%. This increase reflects a prorated reversal of the -2.83% Medicare cut physician practices have faced since the beginning of 2025, combined with an inflation-based update. This bill represents a critical step toward stabilizing practices and protecting patient’s access to care.

We Need Your Voice

This fight isn’t over. You can take action today by texting ZPFIX to 50457 or visiting our website to demand that Congress either pass S. 1640 or include its critical provisions in upcoming legislation. Patients and physicians alike depend on it.

About ZPAC: the Zotec Political Advocacy Committee (ZPAC), dedicates itself to making a difference for physicians and healthcare administrators nationwide. ZPAC advocates for equitable access to healthcare services for all individuals. Stay informed and engaged with ZPAC by following our podcast episodes, blog posts, and speaking engagements on our active Twitter/X and LinkedIn profiles. Together, we can shape policies that support healthcare providers and promote equitable access to quality care for all. To learn more about Zotec Partners, visit our website here.