After five consecutive years of cuts, Medicare physicians can finally expect to see higher revenues in 2026.
Following the passing of the One Big Beautiful Bill Act in July, Medicare physicians will observe a one-year 2.5% payment increase for 2026, along with the reversal of a 2.83% pay cut that went into effect in January 2025. Physicians will also see a temporary 2% increase through December 2025, delivering immediate relief.
This news is welcome to practitioners who receive Medicare payments and have been impacted by inflation and other rising costs.
With higher revenues forecasted for 2026, practices should consider saving those extra funds to cover unexpected, uninsurable costs, including denied claims, reimbursement rate cuts, and changes in government policies.
Recommended Articles
One way to do so is to make contributions to an 831(b) Plan. This risk management tool was created by Congress in 1986 and allows businesses to set aside tax-deferred reserves to offset the impact of uninsured events, ranging from earnings loss, government orders, business disruptions, and more.
831(b) Plans can give private healthcare practices peace of mind knowing they aren’t at the mercy of traditional insurers, and they can focus on what’s most important – delivering quality care to their patients.
SRA 831(b) Admin specializes in setting up and managing self-insurance options for small businesses throughout the country. By leveraging 831(b) Plans, SRA works alongside business owners to craft customized self-insurance plans that work for them and their needs.
One of our private practice clients shares their 831(b) Plan has complemented the recent changes to the Medicare payment structure, saying their plan “will allow their practice to stay solvent so they can continue to provide critically needed care to rural and underserved communities.”
Another example of how 831(b) Plans are helping our clients stay resilient involves a national consulting firm specializing in business management services that relies heavily on government infrastructure funding for substantial portions of their revenue.
When a sudden change in public policy abruptly terminated one of their government funding streams, the firm realized it would be on the hook to remedy the loss, estimated to be about $2 million. Insurance coverages typically exclude losses resulting from political decisions or governmental policy shifts, leaving businesses highly vulnerable to sudden financial disruptions stemming from political actions.
The firm quickly filed a claim under SRA’s political risk policy within their 831(b) Plan, and the policy provided coverage up to a limit of $600,000, significantly mitigating the financial damage incurred by the company. This immediate financial support enabled the firm to continue operations and stabilize its financial position during a critical transition period.
This is just one example of how 831(b) Plans can keep all types of small businesses moving forward after unexpected incidents.
In the constantly evolving landscape of healthcare, insurance, and public policy, medical professionals should have more agency when it comes to protecting and preparing their practices from the unknown. 831(b) Plans shift that power from the insurer to the insured – back into the hands of the practice owner who leads the company, the way it is intended.
As the mainstream insurance industry remains volatile, it is up to every business leader to take the appropriate action to protect themselves, their companies, their employees, and their clients. Doing so starts with a comprehensive, effective, and affordable risk management strategy where they have the authority and ability to respond to immediate needs and impending disasters. 831(b) Plans can help make that a reality.
===
Van Carlson is the Founder & CEO of SRA 831(b) Admin and has over 25 years of experience within the risk management industry. With a steadfast commitment to empowering trusted advisors and entrepreneurs through innovative risk solutions, Carlson has been a guest on more than 75 podcasts in a myriad of industries and has presented at conferences across the country. Carlson has also spearheaded SRA to new heights, earning a spot on the Inc. 5000 among other prestigious awards.
Prior to founding SRA, Van ran his own property and casualty firm for 15 years and was awarded Presidents Council’s and other top-performing achievements during his tenure as a P&C Agent. In 2008, he saw the Great Recession hit his commercial business clients hard, and just like them, he was also affected by the sharp downturn in our economy. During this time, he realized there must be a better way to manage risk overall. From that desire to improve business operations for both himself and his clients, along with his extensive background in insurance, risk management, and finance, a mission to educate others about 831(b) Plans began and continues.
Thanks for reading CPA Practice Advisor!
Subscribe Already registered? Log In
Need more information? Read the FAQs
Tags: 831(b), government shutdown, healthcare, insurance, medicare, obbba, physicians, Risk Management, Taxes
