MedPAC Issues Recommendations to Increase Physician Payments

The Medicare Payment Advisory Commission (MedPAC) held its monthly public meeting on January 16, 2025, where they endorsed recommendations for Medicare payment reform. Key decisions included a two-part payment reform to Medicare's fee-for-service payment policies for calendar year 2026. Specifically, the MedPAC commissioners voted to recommend that Congress replace the current updates to the Medicare payment rates for physicians and other health professional services with a single update linked to the Medicare Economic Index (MEI) and establish safety net add-on payments under the Physician Fee Schedule for services provided to low-income Medicare beneficiaries.