July 8, 2025

On July 4, President Trump signed into law the Budget Reconciliation Bill. The law is substantially similar to the updated version that emerged from the Senate on June 30. The final bill language was approved by the Senate on July 1st and by the House on July 3rd.

Here is a summary of the significant health care provisions in the law. They include changes affecting Medicaid and marketplace plans, along with other health care provisions including a Medicare physician payment increase for 2026 and new flexibilities for HSAs.

Notably, the legislation does not include several other types of changes that were considered during the legislative process, such as MA cuts, CSR funding, PBM reforms, or restrictions on state AI regulation.

AHIP released a statement following the final passage of the Budget Reconciliation Bill.