Medicare Update: What You Need to Know
- Northaven Senior Living
- Aug 1
- 1 min read
We’re keeping an eye on a new federal law, known as the One Big Beautiful Bill, and how it could affect Medicare in the coming years. While the bill does not directly cut Medicare benefits, it could trigger automatic budget rules that reduce Medicare payments to providers starting in 2026.
Here’s why: under the Pay-As-You-Go (PAYGO) Act, if new laws add to the federal deficit, automatic cuts (called sequestration) are applied to certain programs. For Medicare, these cuts are capped at 4% per year and would only affect payments made to providers and health plans — not to Medicare eligibility or basic benefits for enrollees.
According to the Congressional Budget Office, these automatic cuts could add up to about $45 billion in 2026 and nearly $490 billion from 2027–2034, unless Congress passes a separate bill to waive PAYGO, as it has done in the past.
For residents and families, the most important takeaway is this: your Medicare benefits are not being reduced. What may change, if Congress does not act, is the level of reimbursement that providers like hospitals, doctors, and senior living communities receive.
Northaven is a proud member of LeadingAge, which represents nonprofit senior care providers in Washington and across the country. Through this network, we’ll continue to stay informed and advocate for solutions that protect access to high-quality care.
Learn more about our mission and care at Northaven: www.northavenseniorliving.org