Big Beautiful Bill Impact on Members

You have likely noticed that the Big Beautiful Bill was recently signed into law and may be wondering how it impacts you. 

PPMA has compiled a list of components of the bill that may be of importance to our members. It may be beneficial to seek the advice of a tax or legal professional to determine the potential impact that the regulatory changes will have based upon one's unique circumstances.

Here are some of the updates broken down by those that the new act applies to:

All Members:
-Income tax brackets have not changed.
-Those who have eligible child tax credits on their income tax returns can expect to see an increase in 2026 to a $2,200 credit.
-Tax deductions are available for vehicle loan interest.
-State and Local Tax deductions increase from $10,000-$40,000.
-The standard deduction increases to $15,750 for single filers, $23,625 for head of household, and $31,500 for joint filers, with subsequent indexes to inflation after this year.

Members who accept Medicaid and Medicare:

-Offices may want to consider verifying eligibility on patients as new enrollment and eligibility requirements have changed. Some patients will not be required to pay a co-pay.
-Members can anticipate a 2.5% increase in Medicare reimbursements in 2026.
* In addition to these changes, payers will be able to increase telehealth services as a part of the bill, to which we may see updates from commercial insurance providers in the future as a result of this regulatory update.

Members who are self-employed and/or operate their practice:

-Employers with hourly employees who work overtime will need to continue processing payroll as they have in the past and ensure that overtime wages are displayed on W-2s issued for the 2025 calendar year (and subsequent years), as employees may be eligible for tax deductions on all or a portion of these wages.
-Businesses that are required to issue 1099s for payments to independent contractors do not need to issue 1099s under $2,000.

Members and their family members with current student loans:
-There are changes to the Parent PLUS loans that may need to be reviewed as caps are implemented.
- Refinancing student loans may become more attractive. Members are encouraged to consult a tax expert before taking any action.

Podiatry School Students/Members with Family Members in Grad/Med Schools:
-Caps on student loans are available for those in graduate and professional schools, including medical school. 

Members should know that PPMA is here for you to guide you through times of change. Those that have

questions or concerns may contact our office.

Learn more:https://www.congress.gov/bill/119th-congress/house-bill/1/text