The Centers for Medicare & Medicaid Services (CMS) has released the proposed 2027 Medicare Physician Fee Schedule (PFS), outlining payment and policy changes that would take effect on January 1, 2027. While the proposal includes several initiatives intended to modernize Medicare payment and expand value-based care, it also continues a troubling trend: another reduction in Medicare physician payments. This week, we’ll highlight the physician fee schedule. Next week we’ll address other areas physicians should have on their radar.
Under the proposed rule, qualifying clinicians participating in Advanced Alternative Payment Models (APMs) would see a 1.19% payment reduction, while all other physicians would face a 1.68% decrease beginning January 1, 2027. Although the reductions may seem small, they come as physician practices continue to face rising costs for staffing, supplies, technology, and regulatory compliance. Continued payment instability creates additional pressure on practices already working to meet growing patient demand, particularly in rural and underserved communities.
The proposal underscores a challenge physicians have faced for years: Medicare payment updates continue to fall short of the actual cost of delivering care. Without long-term physician payment reform from Congress, practices will continue to face difficult financial decisions that could affect patient access.
The proposed rule is open for public comment through September 14, 2026, before CMS issues the final rule later this fall.
If you would like to submit a comment, go to the proposed rule and click on SUBMIT A PUBLIC COMMENT.
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