MedPAC Proposes Inflation Tie for Physician Pay Updates

The Medicare Payment Advisory Commission (MedPAC) is urging Congress to link physician pay updates to inflation, a change that has been long advocated by the radiology community. MedPAC met in early March to discuss draft recommendations that are set to be finalized later this month and included the need to adjust physician payments based on the Medicare Economic Index, reflecting practice cost inflation. The American College of Radiology (ACR) and the American Medical Association (AMA) have expressed support for these proposals, highlighting concerns that existing payment structures are unsustainable, particularly for Medicare patients in underserved areas. Statements from the AMA point out that physicians have experienced significant payment reductions over the years, and failure to act could lead to further access issues for patients.