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MedPAC Backs Current Law Hospital Payment Update, Seeks $1B Boost for Safety-Net Hospitals
Medicare’s hospital sector remains stable, with rising service use and improving financial indicators, according to data reviewed by the Medicare Payment Advisory Commission (MedPAC) at its Dec. 4 meeting. The Commission’s draft recommendation for 2027 would update hospital payment rates by the amount specified in current law and add $1 billion in targeted support for hospitals treating larger shares of low-income beneficiaries.
Medigy Insights
Despite overall stability in hospital access and finances, MedPAC’s recommendation highlights ongoing financial pressures—especially for hospitals with vulnerable patient populations—and underscores the need for more equitable payment allocation.
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