CMS Finalizes 2027 Physician Fee Schedule With Mixed Payment Changes
CMS published its CY 2027 Medicare Physician Fee Schedule final rule on Nov. 9, with most provisions taking effect Jan. 1, 2027. The rule sets a conversion factor of about $32.95 for Advanced APM qualifying participants, a 1.83% decrease, and about $32.63 for non-qualifying clinicians, a 2.31% decrease, reflecting the expiration of a temporary CY 2026 statutory increase. It also changes how CMS allocates indirect practice expense using work and clinical-labor RVUs, phases out the Indirect Practice Cost Index over CYs 2027-2028, caps most methodology-driven PE RVU changes at 5%, and equalizes facility and non-facility practice expense RVUs for specified nursing-facility E/M codes starting in CY 2027. The rule also touches the Medicare Shared Savings Program, Quality Payment Program and Medicare Prescription Drug Inflation Rebate Program, per BakerHostetler.