MedPAC Recommends Improving Accuracy of Physician Payments

The Medicare Payment Advisory Commission (MedPAC) released its June 2025 Report to Congress June 12, outlining its evaluation of several issues affecting the Medicare program. MedPAC is an independent congressional agency established to advise Congress about program-related issues.

Within the report, MedPAC makes two recommendations for updating fee-for-service clinician payments:

• Congress should replace the current law updates to the physician fee schedule with an annual update based on a portion of the growth in the Medicare Economic Index (MEI) (such as MEI -1%). 
• Congress should direct the secretary of the U.S. Department of Health and Human Services to improve the accuracy of Medicare’s relative payment rates for clinician services by collecting and using timely data that reflect the costs of delivering care.

Other topics outlined in the report include Medicare’s measurement of rural provider quality, reducing beneficiary cost sharing for outpatient services at critical access hospitals and several issues related to Medicare Advantage. 

This report reflects the commission’s ongoing commitment to ensuring Medicare remains financially sustainable while maintaining access and quality for beneficiaries.

The American College of Radiology® (ACR®) developed a summary of the radiology-relevant topics included in the report. For more information or if you have questions, contact Kimberly Greck, American College of Radiology® Senior Economic Policy Analyst.