On October 31, 2025, the Centers for Medicare & Medicaid Services (CMS) issued a final rule that announces final policy changes for Medicare payments under the Physician Fee Schedule (PFS), and other Medicare Part B issues, effective on or after January 1, 2026. The calendar year (CY) 2026 PFS final rule is one of several final rules that reflect a broader Administration-wide strategy to create a health care system that results in better quality, efficiency, empowerment, and innovation for all Medicare beneficiaries.
Calendar Year (CY) 2026 Medicare Physician Fee Schedule Final Rule (CMS-1832-F) | CMS
Comments on the rule from leading industry groups are mixed.
The American Medical Association
In a statement released by the AMA cautioned that although the 2026 Medicare Fee Schedule includes a vital, one-time 2.5 percent update and critical telehealth provisions, other components of the rule may have unintended consequences for patients and private physician practices across the country.
“We’re concerned that, at a time of increasing consolidation in health care, this rule will make it harder for independent practices to remain viable parts of our health system. We look forward to working with CMS to address that concern, so Medicare patients can continue to see their physicians,” Mukkamala added.
The American Hospital Association
In a statement shared with media, Ashley Thompson, AHA senior vice president of public policy analysis and development, said, “The AHA is pleased that CMS, as directed by Congress, finalizes a positive payment update for physicians for CY 2026. However, we are disappointed that the agency also finalizes the proposed efficiency adjustment and changes to the practice expense methodology, which both redistribute payments and disadvantage certain providers, including hospital-based physicians. We remain concerned about the overall inadequacy of Medicare physician payments and its impact on access to and quality of care. We also applaud CMS for extending or making permanent certain telehealth flexibilities, which are needed now more than ever to ensure patients’ continued access to high-quality care.”
California Medical Association
While CMA appreciates the appropriate geographic payment updates and efforts to stabilize primary care in the final rule, the fee schedule overall falls far short of addressing the fact that physician payments that have declined by 33% (adjusted for inflation) since 2001.
“While there are some welcome changes in this year’s rule, it does not address the chronic underpayment that threatens access to care and the stability of physician practices nationwide,” said CMA President René Bravo, M.D. “For too long, physicians have absorbed rising costs while payments stagnate. We are being asked to do more with less, and budget-neutral tweaks only shift the pain around. Without a lasting, inflation-based fix from Congress, access to care for millions of Medicare patients will continue to erode.” Read the entire statement.
American physical Therapy Association
After five years of cuts, CMS proposes an increase in the conversion factor but devalues physical therapy codes. APTA strongly opposes these RVU changes and has proactively reached out to CMS to get clarification on the methodology used to make these adjustments as there is no explanation in the proposal itself that would explain the shift in reimbursement. Read the entire statement.
MGMA
MGMA Statement: “While we are pleased to see a marginal increase to the 2026 Medicare conversion factors, today’s final rule includes many policies that will threaten the financial sustainability of medical groups and cause significant disruption to their operations. Medical groups have had to deal with a 2.83% cut to the Medicare conversion factor all of 2025, and the 2026 conversion factors are barely an increase over 2024 payment levels. This does not remedy previous cuts that medical groups have absorbed due to flawed policy, nor does it address potential future cuts resulting from budget neutrality. Further undermining the 2026 conversion factor increases are arbitrary cuts to work and practice expense relative value units (RVUs) that do not accurately reflect the cost of providing care and disproportionately impact certain specialties.
Taken together, these policies reflect systemic inadequacies in the payment structure. Congress must intervene and pass legislation to provide an annual inflationary update to physician payments, ensuring Medicare is on a sustainable trajectory.”
American Telemedicine Association
ATA Action, the advocacy arm of the American Telemedicine Association, reacted to the final 2026 Medicare Physician Fee Schedule (PFS) posted by the Centers for Medicare & Medicaid Services (CMS).
“We are encouraged by CMS’ continued recognition of telehealth as a vital component of care delivery and are pleased to see many positive steps included in the final 2026 Medicare Physician Fee Schedule, including expanded coverage, streamlined processes, and permanent adoption of key flexibilities,” said Kyle Zebley, executive director of ATA Action and senior vice president, public policy of the ATA. “However, we have ongoing concerns that the issue of provider location and home address reporting has not yet been fully resolved, a change that could significantly impact providers across the country when the current flexibility expires on December 31. ATA Action will continue to engage with CMS on this issue seeking effective, practical solutions and clear guidance for providers delivering care from home.” Read the entire statement.
Society of Interventional Radiology
We’re pleased to share several significant advocacy wins for interventional radiology in the recently released Centers for Medicare and Medicaid (CMS) calendar year (CY) 2026 Medicare Physician Fee Schedule (MPFS) final rule, reflecting the substantial impact of SIR’s members, volunteers, and staff engagement. Read the entire statement.