What Happened?

Doctors, pharmacists, and cybersecurity experts told a House panel on Sept. 15 that Medicare's payment system is failing providers and that hospitals face a growing wave of ransomware attacks that can knock out billing and patient care systems for weeks. [](#ngr-eca9d82c-fb1e-4e1c-9119-0b5abc1448f0)

The House Energy and Commerce Subcommittee on Health reviewed 17 bills covering both Medicare payment reform and healthcare cybersecurity, with witnesses warning that inaction could push more rural hospitals and clinics toward closure.

Physicians have lost about 29 percent of their purchasing power since 2001, when Medicare payments are adjusted for inflation, according to testimony from Murad Alam of the American Academy of Dermatology Association. On top of that, doctors face a 2.5 percent cut to their professional fees under the finalized 2026 Medicare Physician Fee Schedule.

Why Does it Matter to Me?

Nearly 150 rural hospitals have stopped or plan to stop providing obstetric services between 2020 and the end of 2026, according to testimony from Dr. Eilean Attwood, an OB-GYN at Baystate Medical Center in Springfield, Massachusetts. In rural Tennessee, pharmacies are sometimes the only healthcare provider within 30 or more miles, according to Anthony Pudlo of the Tennessee Pharmacists Association.

Cyberattacks add another layer of risk to your care. The 2024 Change Healthcare ransomware attack disrupted claims processing at about 94 percent of U.S. hospitals. In just the first three months of 2026, healthcare organizations recorded 120 ransomware attacks, with average ransom demands surging to $16.9 million, up from $577,800 the prior quarter, according to data presented at the hearing.

Both Sides, Now

Both Republicans and Democrats said Medicare's payment structure needs an overhaul, but they split on scope and urgency. Bipartisan bills on the table include H.R. 9693, the Patients First Act, introduced by Reps. John Joyce (R-PA) and Kim Schrier (D-WA), and H.R. 8163, the Provider Reimbursement Stability Act, introduced by Reps. Greg Murphy (R-NC) and Brad Schneider (D-IL).

Rep. Diana DeGette (D-CO) argued that an estimated 15 million people stand to lose healthcare access due to Medicaid cuts and the expiration of Affordable Care Act premium tax credits, driving up uncompensated care costs for providers already under pressure. On cybersecurity, hospital and provider groups backed stronger federal standards but asked the Department of Health and Human Services to narrow a proposed cybersecurity rule, citing costs and timelines that would fall hardest on rural hospitals and small practices.

What Happens Next?

Congress faces a hard deadline: witnesses said lawmakers need to act on a potential "doc fix" by the end of 2026 to prevent further Medicare payment reductions. The full Energy and Commerce Committee has already advanced 17 bills to the House floor, including the Lower Costs, More Transparency Act, after a markup in July.

On cybersecurity, the Senate Health, Education, Labor, and Pensions Committee voted 22-1 in February to advance the Health Care Cybersecurity and Resiliency Act of 2026. As of mid-2026, no final cybersecurity rule had been issued by the Department of Health and Human Services, and no House floor vote on the payment or cybersecurity bills had been scheduled.

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This article was generated by AI pulling from data. Each article is edited by an editor for accuracy and clarity.

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