March 2026 Report to the Congress: Medicare Payment Policy

March 2026 Report to the Congress: Medicare Payment Policy

We provide an overview of MA, including recent trends in enrollment, plan availability, and Medicare’s payment to plans, and we discuss issues such as MA coding intensity, favorable selection, and Medicare payments and MA plan costs for MA enrollees with end-stage renal disease (ESRD). In this year’s report, we include a chapter on trends and key issues in post-acute care. We make recommendations for FFS payment systems for skilled nursing facilities, home health agencies, inpatient rehabilitation facilities, and hospice providers.

— Medicare Payment Advisory Commission (MedPAC), March 12, 2026

Medicare Payment Advisory Commission. “March 2026 Report to the Congress: Medicare Payment Policy.” MedPAC, 12 Mar. 2026. https://www.medpac.gov/document/march-2026-report-to-the-congress-medicare-payment-policy/.

The Medicare Advantage Paradox: Who Benefits Most?

Medicare Advantage now covers about 55% of eligible beneficiaries (about 35 million people) and costs the federal government a projected $76 billion more in 2026 than traditional fee-for-service Medicare would, according to a March report by the Medicare Payment Advisory Commission. MA plans are paid per member, per month, incentivizing briefer skilled nursing facility stays, utilization of less costly post-acute care and longer hospital stays to keep out of post-acute care altogether.

— Becker’s Payer Issues, March 24, 2026

MA Spending 14% Higher Than FFS Medicare, Including at Nursing Homes, Driven by Coding Intensity and Enrollment Trends

Medicare spends 14% more on Medicare Advantage (MA) enrollees than if they were to be enrolled in Medicare Fee-for-Service (FFS), equating to roughly $76 billion in additional spending estimated for 2026, according to the latest report from the Medicare Payment Advisory Commission (MedPAC). Medicare spent $537 billion on MA plans in 2025, not including prescription drug plan payments; Medicare’s payments to MA plans are projected to be $615 billion. That’s $16,242 per beneficiary this year, which includes about $2,660 in rebate payments per enrollee.

— Skilled Nursing News, March 13, 2026

Medicare Advantage Spending 14% Higher Than Fee-for-Service in 2026: MedPAC

The Medicare Payment Advisory Commission estimated Medicare Advantage payments will be 14% greater than fee-for-service Medicare in 2026, according to a March 12 report from the congressional agency. That 14% equates to an extra $76 billion for MA, with the increase attributable to favorable selection and coding intensity. MedPAC recommended payment cuts across skilled nursing facilities, home health and inpatient rehab.

— Becker’s Payer Issues, March 12, 2026