On March 13, the Medicare Payment Advisory Commission (MedPAC), an independent agency of Congress, released its statutorily required annual report to Congress on the Medicare fee-for-service payment systems. The report contains recommendations on topics including an assessment of payment adequacy and access across Medicare settings. The commission recommends that for calendar year 2026, Congress should replace the current-law updates to Medicare payment rates for physician and other health professional services with a single update equal to the projected increase in the Medicare Economic Index (MEI) minus one percentage point, and establish safety-net add-on payments under the physician fee schedule for services delivered to low-income Medicare beneficiaries. MedPAC estimates that these changes would increase Medicare spending between $10 billion and $25 billion over five years. The commission also made 2026 payment update recommendations for hospital inpatient and outpatient services, skilled nursing facility services, home health agency services, inpatient rehabilitation facility services, outpatient dialysis services, and hospice services.
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