MedPAC Backs Medicare Payment Increases for 2027

The Medicare Payment Advisory Commission (MedPAC) finalized its recommendations to Congress about how Medicare should update payments to doctors and hospitals in 2027. MedPAC is a non-partisan, independent legislative branch commission created to advise Congress about Medicare-related issues.

In preparation for its March Report to Congress, here are the key recommendations from MedPAC: 

1. Increase Payments for Physicians and Health Professionals
   MedPAC recommends that Congress raise payment rates for physicians and other health professionals by 0.5 percentage points above current law.
    
   
   • If enacted, this change would increase Medicare spending by $750 million to $2 billion in one year.
   • Over five years, the increase would total $1 billion to $5 billion.
      
2. Update Hospital Payment Rates and Add Safety Net Support
   For general acute care hospitals, MedPAC recommends that Congress:
    
   
   • Follow the current-law update for the 2026 base payment rate in 2027.
   • Add $1 billion to strengthen the Medicare Safety-Net Index (MSNI), a tool first outlined in MedPAC’s March 2023 report to help hospitals serving more low income patients.

If you have questions or want more information, contact Kimberly Greck, ACR^® Senior Economic Policy Analyst.