MedPAC proposes MPFS payment update reform

The Medicare Payment Advisory Commission (MedPAC) met March 6-7 to work on several draft recommendations, including one about reforming Medicare Physician Fee Schedule (MPFS) payment updates for its June 2025 report to Congress, the American College of Radiology (ACR) said.

MedPAC has long expressed concern regarding whether current law updates to the MPFS will continue to be adequate in light of inflation trends, as well as concern about the accuracy of relative value units (RVUs) under the MPFS, according to the ACR.

During the virtual meeting, the MedPAC chair presented a draft recommendation that would "require Congress to direct the Secretary of the Department of Health and Human Services to regularly update the cost data used to update relative value units (RVUs) under the [MPFS], and to ensure that the methodology for updating RVUs reflects the cost differentials when physician services are provided in different settings," the ACR reported.

The recommendation is expected to be presented with the commission's final suggestions for physician payment updates at MedPAC's next meeting in April.

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