Medicare Proposes 1.7% Physician Reimbursement Cut

On July 14, 2026, the Centers for Medicare and Medicaid Services (CMS) released the 2027 Physician Fee Schedule Proposed Rule (Proposed Rule), which outlines proposed changes to payments under the Medicare Physician Fee Schedule (PFS) and other Medicare Part B policies effective in 2027. Among other changes, the Proposed Rule details significant reimbursement updates for next year, including:¹

• Separate Conversion Factors: As introduced in 2026, CMS will continue to maintain separate conversion factors for alternative payment model (APM) qualifying participants (QPs) and providers who are not QPs.
• Overall Decrease: The non-qualifying APM conversion factor for 2027 is proposed to be $32.84, a 1.68% decrease from the current conversion factor. The qualifying APM conversion factor for 2027 is proposed to be $33.17, a 1.19% decrease. The proposed reductions primarily reflect the expiration of the one-year 2.50% statutory conversion factor increase that applied to CY 2026.