Skip to Content

AMA supports MedPAC on payment update

AMA supports MedPAC on payment update

WASHINGTON – The American Medical Association supports a recommendation from MedPAC to link next year’s physician payment update to the growth in the cost of providing care. MedPAC recently voted to recommend a 2026 payment update of Medicare Economic Index minus 1%, slightly adjusting the formula it endorsed last year to increase payment by 50% of MEI. “While neither recommendation covers the estimated inflation that physician practices face, both approaches embrace the fact that Medicare payment updates need to be tied to inflation,” said Bruce Scott, M.D., president of the AMA. When MedPAC forwards its recommendations to Congress in March, the AMA hopes that lawmakers agree that Medicare payments to physician practices under current law are inadequate. In December, however, Congress failed to stop a 2.8% cut in Medicare payments to physician practices, the fifth cut in five years, despite practice costs rising 3.5%, according to Medicare’s own estimates. The AMA is working to reverse those cuts. “The Medicare payment system is broken,” Scott said. “MedPAC has come up with a thoughtful response that heads in the right direction. Congress must prioritize Medicare reform this year. The status quo is unsustainable and unhealthy for our country.”

Comments

To comment on this post, please log in to your account or set up an account now.