KFF October 7, 2025
Issue Brief
This brief was updated on October 7, 2025 to reflect provisions in the tax and spending bill enacted in July 2025, as well as an overview of proposed changes in the 2026 Medicare Physician Fee Schedule proposed rule issued on July 14, 2025.
More than 67 million people—20% of the U.S. population—receive their health insurance coverage through the federal Medicare program. Among the most commonly used services that Medicare covers are physician services and other outpatient services covered under Medicare Part B. In 2021, 9 out of 10 beneficiaries in traditional Medicare used physician and other Part B medical services. Nearly half of the $1 trillion in gross Medicare benefit spending in 2023 (49%...
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