H.R. 8386: Removing Excessive Cuts to Outpatient and Vital Essential Rehabilitation Act of 2026

This bill, titled the Removing Excessive Cuts to Outpatient and Vital Essential Rehabilitation Act of 2026 (RECOVER Act of 2026), aims to amend the Medicare program, specifically focusing on the payment structure for multiple therapy services. Here are the main points of the bill:

Payment Reduction Elimination

The bill proposes to eliminate the current payment reduction applied to certain multiple therapy services under Medicare. This payment reduction, which is set at 50 percent, would be changed to 0 percent for services provided on or after January 1, 2027. The sections of the Social Security Act that the bill amends include:

• Physician Fee Schedule: The bill modifies section 1848(b)(7), which governs payments to providers under the Medicare Physician Fee Schedule, ensuring that those providers will not face a reduced payment for multiple therapy services rendered after the specified date.
• Outpatient Therapy Services: It also affects section 1834(k)(7), which oversees outpatient therapy services and comprehensive outpatient rehabilitation services, removing the payment reduction for these services starting from January 1, 2027.

Impact on Service Providers

By removing these payment reductions, the bill aims to support healthcare providers who offer rehabilitation services, potentially allowing for better financial sustainability and continuing the delivery of essential care to patients requiring outpatient rehabilitation therapies.

Goals of the Bill

The primary goals of this legislation include:

• Ensuring that patients have access to necessary outpatient rehabilitation services without the burden of reduced payments affecting providers.
• Strengthening the financial position of healthcare providers who deliver multiple therapy services under Medicare.
• Encouraging a higher quality of care for patients receiving rehabilitation services by alleviating financial pressures on providers.

Future Considerations

The bill will need to pass through various committees and receive approval from both the House of Representatives and the Senate before it can become law. It is important to monitor how this bill advances and its potential implications for healthcare providers and patients alike.

Relevant Companies

• UNH - UnitedHealth Group: As a major player in the healthcare insurance industry, changes in Medicare payments could significantly affect their service offerings and reimbursement structures.
• ANTM - Anthem, Inc.: As a health insurance provider, alterations in Medicare payment policies could influence their economic performance regarding outpatient therapy services.
• CNC - Centene Corporation: Centene, which focuses on government programs, could be impacted by the changes in rehab service reimbursement rates under Medicare.