Medicare Physician Data-driven Performance Payment System Act of 2026

This bill rebrands the current Medicare payment system for physicians as the Data-driven Performance Payment System and updates how financial incentives are calculated starting in 2028. Under the new rules, doctors who meet performance standards will receive a 25% payment increase, while those below the standard will face a 25% decrease, with a lower penalty for those who cannot report data due to extraordinary circumstances. The legislation also creates a funding mechanism to provide lump-sum bonuses to small, under-resourced practices in rural or underserved areas when the overall system generates savings, ensuring these providers can invest in care improvements.