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Medicare sets a lower physician payment rate for next year
Published Nov 13, 2026 · Last checked Nov 13, 2026 · Last changed Nov 13, 2026Medicare's final rule for 2027 cuts the payment rate for most physicians by 2.31% from Jan 1, 2027.
- For
- Medical practices. All sizes. Owner, manager, billing.
The facts
- CMS released the final 2027 physician fee schedule on Nov 4, 2026. It takes effect on Jan 1, 2027.
- The conversion factor for most physicians falls from $33.40 to $32.63. That is a cut of 2.31%.
- For physicians in qualifying payment models, it falls from $33.57 to $32.95.
- In July, CMS had proposed a smaller cut of 1.68%.
- A new rule pays 20% less for the lower-paid service when an office visit and a minor procedure are billed on the same day with modifier 25.
- Medical Economics reports that dermatology, ear, nose and throat, and podiatry are affected most by that rule.
- Medicare telehealth flexibilities run through the end of 2027 under a separate law.
What it means for you
A practice is paid less by Medicare for the same work from Jan 1, 2027, unless Congress changes the rate.
Sources
- Medical Economics, trade publication, Nov 4, 2026.