The Medicare Payment Advisory Commission has voted to recommend a 0.5% payment increase for Medicare physician services in 2027, in addition to the 0.25% and 0.75% updates specified in current law.
In a Jan. 15 news release, the American Medical Association expressed support for the move but emphasized the need for broader reforms. “Absent meaningful reform, physicians again will face payment cuts, and Congress will once more be forced into last-minute efforts to avert further disruption,” said David Aizuss, MD, chair of the AMA Board of Trustees.
Physician payment under Medicare has declined 33% from 2001 to 2025 when adjusted for inflation in practice expenses, according to the AMA. Dr. Aizuss affirmed the AMA’s supported MedPAC’s earlier endorsement of linking payment updates to the Medicare Economic Index, Dr. Aizuss said the commission has since stepped back from that approach.
MedPAC will forward its recommendation to Congress for consideration.
