Doctors across the United States may soon receive better payment from Medicare. A new proposal suggests that physician fees could go up by as much as 3.8% in 2026, especially for those involved in programs that focus on patient outcomes and value-based care.

This change comes after years of complaints from doctors who say that rising costs and lower reimbursements have made it harder to run their practices.

Who Will See the Increase?

Doctors who are part of Alternative Payment Models (APMs) will likely see the full 3.8% increase. These models reward doctors not just for the number of services they provide, but for how well they care for patients.

Even doctors who are still using the traditional fee-for-service model are expected to get a 3.3% pay raise, which is higher than in recent years.

Why Is Medicare Making This Change?

Over the past few years, many doctors have been asking for help. Inflation, staffing shortages, and higher business costs have all made it tough to keep practices running. Some smaller clinics have even shut down.
Medicare responded by including a temporary 2.5% boost that was approved by Congress. The new proposal builds on that by adding more support for value-based care providers.

Is This a Long-Term Fix?

Many doctors and medical groups are happy with the increase, but some say it’s only a short-term solution. Medicare still does not have a system that automatically adjusts payments for inflation. Without that, payment rates could fall behind again in future years.
Doctors want a more stable payment model that keeps up with the real-world costs of delivering care.

What Happens Next?

Medicare is now collecting public comments on the proposed changes. The final decision will be announced later this year. If approved, the new rates will start on January 1, 2026.