Medicare and Medicaid
CMS finalizes Medicare physician payment cuts for 2027
The 2027 fee schedule lowers the conversion factor by 1.83% to 2.31%, depending on physicians’ participation in an alternative payment model.
CMS finalized the 2027 Medicare Physician Fee Schedule, including lower payments for physicians. MedPage Today and the American College of Physicians reported conversion factor decreases of 2.31% for physicians not in an advanced payment model and 1.83% for those participating. Healthcare Dive gave rounded figures of 2.3% and 1.8%. The American College of Cardiology reported different decreases, 2.36% and 1.86%.
The rule also finalizes a 20% payment reduction for certain services provided on the same day, down from the 50% reduction proposed earlier. Physician groups criticized the cuts, saying they could strain practices and affect patients’ access to care. CMS also finalized payment incentives for accountable care organizations. MedPage Today reported a 32% increase for qualifying visits in certain Medicare ACO models, while the rule allows eligible ACOs to reduce or eliminate Medicare Part B cost-sharing.
The payment changes apply in 2027. The final rule also expands some primary care payments and delays a requirement for staff providing remote monitoring services, according to MedPage Today.
Reporting on this story
- MedPage Today Physician Groups Give Mixed Reviews on Medicare Fee Schedule Final Rule (opens in a new tab)
- Healthcare Dive Medicare finalizes physician pay cut for 2027 (opens in a new tab)
- ACC (Cardiology) 2027 Medicare Physician Fee Schedule Final Rule: An ACC Advocacy Deep Dive (opens in a new tab)
- ACP ACP: Medicare physician payment cuts threaten patient access to care (opens in a new tab)
