Medicare Panel Mulls Call for Inflation-Based Doctor Pay Updates

March 6, 2025, 9:48 PM UTC

The Medicare Payment Advisory Commission is considering recommending that Congress revamp the way fee-for-service payment rates for physicians are updated each year.

MedPAC, which advises Congress on Medicare policy, has long reported that payment rates for traditional Medicare are adequate to ensure that beneficiaries’ access to care is equal to, or better than, those with private health insurance. But in recent years, commissioners have become concerned about whether current-law updates to Medicare payment rates will be adequate, as medical inflation continues to increase.

On Jan. 1, physicians saw a 2.83% payment cut for outpatient care provided to beneficiaries in traditional ...

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