On November 4, 2026, the Centers for Medicare & Medicaid Services (CMS) released the 2027 Medicare Physician Fee Schedule (MPFS) final rule, which takes effect January 1, 2027. The rule finalizes a Medicare conversion factor of $32.63 for most physicians, a decrease of 2.31%. The rule also finalizes a modification to the proposed payment reduction for evaluation and management (E/M) services billed with a procedure on the same day (modifier 25). In place of the proposed 50% reduction for these services, Medicare has finalized a 20% reduction. This outcome is the direct result of the advocacy efforts of AAPM&R and our partners.
Your Academy is currently reviewing the rule and will update this story with additional details on finalized policies in the coming days.