The Medicare Payment Advisory Commission (MedPAC) is recommending Congress increase physician payment rates annually for inflation.
Inside the report: The recommendation, included in MedPAC’s June 2025 report to Congress, is consistent with the commission’s previous advocacy for rate increases based on the Medicare Economic Index (MEI).
- The report suggests pay updates of MEI minus one percentage point on a prospective basis.
- For example, if MEI growth is projected to be 4% for the coming year, physician pay would increase by 3%.