News Briefs

Major Optometry Legislative Wins Including Physician Pay Hike and Tax Relief

Picture of US capital illustrating optometry advocacy wins

Photo credit: Getty Images

Optometry advocacy wins in H.R. 1

July 16, 2025

After weeks of intense lobbying in Washington, doctors of optometry and advocates from the American Optometric Association (AOA) celebrated key victories as the sweeping budget reconciliation bill—H.R. 1, the One Big Beautiful Bill Act—was signed into law July 4.

The nearly 1,000-page measure, backed by the Trump administration and Congressional allies, sets economic direction for years to come and includes several optometry-supported provisions.

2.5% Physician Pay Increase, Tax Breaks Cemented

AOA’s advocacy helped secure a 2.5% physician pay increase for 2026, staving off a planned Medicare payment cut. The organization helped lay the groundwork for future positive annual pay updates for all physicians.

For small and mid-sized optometry practices, the final bill includes a permanent extension of the 20% small business pass-through tax deduction, originally slated to end in 2026. AOA also stopped a proposal that would have barred optometry practices from deducting state and local taxes at the pass-through entity level, preserving a key tool for many practices’ financial health.

No New Restrictions Target Optometrists

Despite opposition from anti-optometry interests, the legislation contains no provisions that single out optometrists or restrict their expanding role in health care.

Ongoing Vigilance Needed for Medicare, Medicaid and Research

AOA leaders emphasize that continued attention is needed as new federal rules roll out.

  • Medicare: The payment system still needs permanent reform to prevent future annual cuts for optometrists and other doctors.
  • Medicaid: New eligibility and funding requirements could affect reimbursement and coverage. AOA and state affiliates will monitor developments to protect eye care access.
  • Veterans’ Health Care: The fight continues to maintain full recognition and practice authority for optometrists in the Department of Veterans Affairs, as some groups seek to curtail these rights.
  • Research and Education: Proposals to restructure federal research funding and new changes in student loan rules require ongoing advocacy to ensure fairness for optometry programs and students.

PBM Reform Left Out—But Fight Continues

A setback for many: key Pharmacy Benefit Manager (PBM) reform measures were stripped from the final bill despite broad support. Advocates are already working to advance both PBM and Vision Benefit Manager (VBM) reforms in future Congressional packages, potentially by year’s end.

AOA Advocacy Event Set for September

With the legislative battle over, attention turns to next steps. The AOA invites doctors, students and affiliate leaders to join AOA on Capitol Hill 2025, scheduled for Sept. 28-30 in Washington, D.C. This event connects optometry advocates with national policymakers at a pivotal moment for the profession.

For actionable strategies to navigate the new law, download the AOA’s fact sheet HERE.

Learn more about AOA on Capitol Hill and registration details HERE.

Read other recent news in Review of Optometric Business.

To Top
Subscribe Today for Free...
And join more than 35,000 optometric colleagues who have made Review of Optometric Business their daily business advisor.