The Pay PCPs Act of 2026 would allow Medicare to create a new hybrid payment system for primary care doctors that combines monthly per-patient payments with traditional fee-for-service charges. Under this system, primary care providers could receive 40 to 70 percent of their expected annual revenue as upfront monthly payments for each patient, with the remainder paid through standard billing for individual services. The bill aims to better compensate doctors for care coordination, team-based care, patient communications, and other important primary care activities that currently go unpaid under Medicare's complex billing system. The legislation appropriates $10 billion for fiscal years 2027 through 2031 to fund these hybrid payments and allows Medicare to reduce patient cost-sharing by 50 percent for primary care services under the new system, provided beneficiaries designate a primary care provider. Additionally, the bill establishes a technical advisory committee to review and improve how Medicare values different physician services, addressing concerns that the current fee schedule with over 8,000 billing codes produces inaccurate payment rates.
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