Advocacy & Practice Updates — Advocacy & Practice
MedPAC Recommends Modest Physician Payment Increase for 2027
The Medicare Payment Advisory Commission (MedPAC) met last week and voted to recommend that Congress increase Medicare physician payment in 2027 by 0.5% more than the scheduled statutory update of 0.5% for a total of 1%. Commissioners cited ongoing high practice costs and beneficiary reports of increased waits for specialist care as rationale for continue physician payment increases.
Some commissioners questioned departing from using the Medical Economic Index (MEI), the main measure of medical inflation as the basis for the update. But others noted that with the MEI expected to be approximately 2% in 2027, this recommendation was consistent with the 2026 recommendation of MEI minus 1%.
As a reminder, MedPAC is an advisory body to Congress, and its recommendations do not have the force of law. Lawmakers, however, seek to base Medicare policy decisions on MedPAC work.
(Publilshed 1.20.26)