CMS Proposes 2027 Physician Fee Cuts, Hitting Dermatology, ENT Hardest
CMS's proposed 2027 physician fee schedule would cut the Medicare conversion factor 1.68% for non-APM clinicians (to $32.8409) and 1.19% for qualifying APM participants, largely due to expiration of a one-time 2.5% boost Congress set for 2026. A proposed policy change to modifier 25 billing, paying only the highest-valued service in full when an E/M visit and procedure occur the same day, would drive much steeper specialty-level cuts: dermatology and otolaryngology face roughly 9% reductions, orthopedic surgery about 7%, and hand surgery about 5%. Behavioral health and primary care-oriented fields would gain, with clinical social work up 12% and clinical psychology up 11%. The AMA and over 150 groups oppose the modifier 25 change, and CMS is expected to finalize the rule in November, with Congress potentially altering Medicare provisions before funding expires December 11.