Fix And Improve Reimbursement (FAIR) for Physicians Act of 2006 - Amends title XVIII (Medicare) of the Social Security Act to repeal the sustainable growth rate (SGR) formula.
Establishes the Physician Payment Update Commission to study and report to the appropriate congressional committees and the Medicare Payment Advisory Commission (MEDPAC) on all matters relating to payment rates under the Medicare physician fee schedule. Requires the Commission to develop recommendations for establishment of a new Medicare physician payment system that would keep pace with increases in medical practice costs and provide stable, positive Medicare updates.