Healthcare in the 2023 Omnibus Bill

On December 29, 2022, President Biden signed a $1.7 trillion year-end Omnibus Bill that includes several changes to federal healthcare policy for the upcoming fiscal year. See below for some of the notable healthcare policies included in this bill.

Medicare Conversion Factor

The bill includes an increase to the Medicare Physician Fee Schedule conversion factor to partially offset reductions originally planned for 2023.

The 2023 conversion factor, originally finalized as a -4.5% decrease, has been reduced to a -2% decrease in reimbursement from 2022 to 2023.

PAYGO Sequestration

The Omnibus bill prevents the significant -4% Pay-As-You-Go (PAYGO) reduction in 2023.

The PAYGO sequestration is delayed until 2025 calendar year.


Telehealth flexibilities allowed under the COVID-19 public health emergency have been extended to December 31st, 2024.  This updates previous legislation which kept these flexibilities in place for 151 days after the end of the PHE.

Quality Payment Program

The incentive for participants in an Advanced Alternative Payment Model (AAPM) track of the Quality Payment Program (QPP) was set to expire at the end of 2022.    

The bill preserves the ‘lump sum’ AAPM for one additional year, however, the incentive amount has been reduced from 5% to 3.5% of Medicare payments for 2023.

Beginning 2024, the ‘lump sum’ incentive will be replaced with an increase to the Medicare conversion factor for eligible QPP participants.

Michele Krpata, BSW, CPC, CPMA

Compliance Officer, Quality Reporting Analyst

For more information and application instructions for the Phase 3 General Distribution of Provider Relief Fund go to