MedPAC Recommends Medicare Payment Increases for 2026

The Medicare Payment Advisory Commission (MedPAC) has recommended significant changes to Medicare reimbursement for 2026, advocating for increased payments to physicians and hospitals while reducing those for nursing homes and home health agencies. Specifically, primary care clinicians could see a 5.7% increase, while other clinicians would receive a 2.5% raise, potentially raising Medicare spending by $10 billion to $25 billion over five years. Additionally, MedPAC suggested a 1% increase in base payments for hospitals and proposed adding $4 billion for safety-net hospitals. The recommendations reflect a response to the perceived inadequacies of the current Medicare payment system, with calls for reform from medical associations emphasizing the unsustainability of the status quo. However, the commission also proposed cuts of 7% for home health and inpatient rehabilitation facilities and 3% for nursing homes, aiming to offset the costs of the proposed increases. These recommendations will be presented to Congress, although action is not guaranteed.