Skip to content
Govbase
Govbase
Agency·Rule

CMS Proposes 2026 Medicare Physician Pay Updates, Tightening Rules on Part B Drug Price Penalties

Medicare and Medicaid Programs; CY 2026 Payment Policies Under the Physician Fee Schedule and Other Changes to Part B Payment and Coverage Policies; Medicare Shared Savings Program Requirements; and Medicare Prescription Drug Inflation Rebate Program

Key Points

  • Starting Jan. 1, 2026, Medicare updates how it pays doctors and other clinicians for visits, tests, and procedures.

    From policy text

    In this major final rule, we are establishing RVUs for CY 2026 for the PFS to ensure that our payment systems are updated to reflect changes in medical practice and the relative value of services, as well as changes in the statute.
    View in full text
  • Doctor pay rates rise a bit overall, but not equally: one pay rate for clinicians in certain value-based programs, another for everyone else.

    From policy text

    the 2026 qualifying APM conversion factor represents a projected increase of $0.39 (1.2 percent) from the current conversion factor of $32.3465. Similarly, the 2026 nonqualifying APM conversion factor represents a projected increase of $0.23 (0.7 percent) from the current conversion factor of $32.3465.
    View in full text
  • Medicare tightens and updates rules for Part B drugs, including how it calculates penalties when drug prices rise faster than inflation.

    From policy text

    For the Medicare Part B Drug Inflation Rebate Program, this rule describes the identification of payment amount benchmark quarter in certain instances and the calculation for the Part B rebate amount in such instances.
    View in full text
  • Accountable Care Organizations in the Medicare Shared Savings Program face updated rules on quality and how patients are counted.

    From policy text

    This final rule modifies policies for the Shared Savings Program, which is a voluntary program that started in 2012. The program allows healthcare providers to form or participate in Accountable Care Organizations (ACOs), to be held accountable for the quality and total cost of care for an assigned population of Medicare fee-for-service (FFS) beneficiaries.
    View in full text
  • The rule also updates policies for telehealth, diabetes prevention services, rural clinics, health centers, ambulances, and quality reporting.

    From policy text

    updates to the Medicare Diabetes Prevention Program expanded model; updates to drugs and biological products paid under Part B; Medicare Shared Savings Program requirements; updates to the Quality Payment Program; updates to policies for Rural Health Clinics and Federally Qualified Health Centers; update to the Ambulance Fee Schedule regulations; codification of the Inflation Reduction Act and Consolidated Appropriations Act, 2023 provisions; updates to the Medicare Promoting Interoperability Program.
    View in full text
Medicare MedicaidHealthcareEconomy Finance

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

What Happens Next

Projected impacts based on AI analysis

2027-2028

CMS may propose using updated practice expense survey data

CMS is still evaluating the AMA's 2024 practice expense survey data and may propose incorporating it into future payment calculations. If adopted, this could significantly redistribute payments across medical specialties based on updated cost information.

Source Information

Document Type

Federal Rule

Official Title

Medicare and Medicaid Programs; CY 2026 Payment Policies Under the Physician Fee Schedule and Other Changes to Part B Payment and Coverage Policies; Medicare Shared Savings Program Requirements; and Medicare Prescription Drug Inflation Rebate Program

Analysis generated by AI. Always verify with official sources.