MedPAC Releases 2026 Data Book on Healthcare Spending
July 29, 2026
The Medicare Payment Advisory Commission (MedPAC) released its 2026 Data Book on healthcare spending and the Medicare program. The report covers data costs from ambulatory care and prescription drugs. MedPAC is an independent, nonpartisan agency that advises Congress on Medicare policy, including provider payments.
The following sections are relevant to radiation oncology:
Section 7: Ambulatory Care
In 2024, total allowed charges for Physician Fee Schedule (PFS) services reached $93.8 billion, including both Medicare program spending and beneficiary cost-sharing. Within these charges, the treatments category accounted for 10.3% of total costs, which includes cancer treatments. MedPAC also reported that specialist encounters among beneficiaries increased modestly, rising by 2.4% in 2024.
MedPAC data further identified the top twenty Ambulatory Payment Classifications (APCs), which together accounted for 44% of Outpatient Prospective Payment System (OPPS) payments in 2024. Among these were Level 3 Radiation Therapy and the cancer treatment drug Keytruda. Keytruda ranked among the highest-cost APCs, accounting for $3.5 billion in OPPS payments, or 4.6% of total OPPS spending. Level 3 Radiation Therapy accounted for $1.0 billion, representing 1.4% of total OPPS payments.
Section 10: Prescription Drugs
In 2024, Keytruda was the top paid product under the Medicare Part B payment system, accounting for $6.0 billion in spending. Approximately 75,900 patients used the drug, with an average spending of $78,900 per user. Keytruda represented 10% of total drug spending, 6% of Part B drug users, and 4% of the average spending per user. Seven of the top twenty Part B drugs are used to treat cancer while two treat cancer side effects.
