MedPAC Discusses 2027 Medicare Payment Updates and Policy Adjustments

The Medicare Payment Advisory Commission (MedPAC) held discussions on payment adequacy and adjustments for various Medicare services including physician, hospital inpatient and outpatient care, skilled nursing, home health, hospice, and dialysis. MedPAC plans to update the 2027 Medicare base payment per current law and recommends implementing a revised Medicare Safety-Net Index (MSNI) with added funding. The methodology of the MSNI has faced criticism from America's Essential Hospitals. The commission debated outpatient payment cuts, specifically related to site-neutral policies affecting hospital outpatient departments. MedPAC also reviewed Medicare trends, including spending growth and provider behavior influenced by payment models, suggesting potential future adjustments in clinician payment rates and Medicare Advantage program changes. Final votes on these recommendations are scheduled for January 2026.