MedPAC discusses 2026 draft payment update recommendations

The Medicare Payment Advisory Commission Dec. 12 and 13 discussed draft payment update recommendations for 2026, which the commission will vote on in January. The draft recommendations call for Congress to update Medicare payment rates for hospital inpatient and outpatient services by the current law amount plus 1% and transition to a safety-net index policy to distribute an additional $4 billion to safety-net hospitals.

They also propose that Congress update 2026 Medicare base payments for physicians and other health professional services by the projected increase in the Medicare Economic Index minus 1% and enact safety net add-on payments for services delivered to low-income Medicare beneficiaries. In addition, the commission proposes to reduce the 2026 payment rate for inpatient rehabilitation facilities by 7%, home health agencies by 7%, and skilled nursing facilities by 3%.