Medicare Proposes $8.1 Billion Boost for Outpatient Care, Cuts Specialist Payments, and Revises Home Health Rates

Medicare has proposed a series of payment adjustments for the 2026 calendar year that include cuts to how much it reimburses doctors for various medical procedures, scans, and tests. These proposed cuts, described as targeting 'efficiency,' would disproportionately affect highly paid specialists, while primary care physicians may see less impact. Additionally, Medicare plans to increase funding for hospital outpatient care by $8.1 billion. The Centers for Medicare & Medicaid Services (CMS) also proposed aggressive rate reductions in the Home Health Prospective Payment System. Updates to the calculation of practice expenses would account for higher indirect costs faced by doctors in office-based settings compared to those working in hospitals. These changes could result in significant price increases for millions of Medicare beneficiaries.