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Medicare’s Proposed Changes to Physician Fee Schedule

Physician cuts won’t save you money; it’ll cost you more.
TAKE ACTION BEFORE SEPTEMBER 14, 2026
 
Physician payment cuts cause private practices to close, then force care to move into hospital-owned practices, where the same visit and services cost more.

Take action by writing to your legislators by September 14, 2026.
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WHAT'S HAPPENING

How a "physician cut" ends up on your bill

Unfortunately, a "physician cut" ends up on your bill.

CMS's proposed 2027 Physician Fee Schedule (CMS‑1848‑P, July 14, 2026) cuts physician payment 1.68% while practice costs rise 2.5%, on top of a 33% inflation-adjusted decline since 2001. Beyond baseline cuts, the proposal directly targets same-day care:


The "Two-Visit Trap" (Same-Day Procedure Cut)

Currently, if you come in for a checkup and your doctor finds a suspicious skin lesion, they can evaluate and treat or biopsy it in the same appointment. Under the 2027 proposal, CMS will cut payment for that visit by 50% simply because a procedure was performed on the same day. To survive these cuts, clinics will be forced to split care across two separate days. For you, that means twice the co-pays, twice the travel, extra time off work, and delayed care.

Here's how that lands on your bill:


1. Cuts close private practices. Only 42% of physicians remain in private practice (60% in 2012); 82% now work for hospitals or corporate entities. Of those who sold, 71% cited the need for higher payment rates.

2. Hospital-owned care costs more. Medicare pays 194% more for the same echocardiogram and 129–211% more for the same chemotherapy infusion at a hospital outpatient clinic, plus "facility fees" of $355 to $503 on routine visits.

3. You pay the difference. Your 20% coinsurance applies to the bigger bill and the facility fee; $1.5 billion a year in extra beneficiary cost sharing, per MedPAC.



Patients with chronic conditions who require frequent visits often have fixed incomes, and will feel it the fastest.


The fix is on the table. Bipartisan bills, the Provider Reimbursement Stability Act (H.R. 8163, passed Ways & Means 44–0) and the Patients First Act, would tie payment to actual practice costs.

Keeping patient care in lower-cost settings (like private practice clinics) would save patients over $90 billion in premiums and cost sharing over a decade.

Congress needs to hear from you.

−1.68%
Physician Cuts
Proposed 2027 Medicare physician payment cut, while practice cuts rise 2.5%.


82%
of U.S. Physicians

now work for hospitals or corporate entities. Private practice is disappearing.


Medicare Pays
+194% Extra

for the same echocardiogram at a hospital outpatient clinic vs. a doctor’s office.

SEPTEMBER 14

Deadline for public comments on the proposed rule. Take action!
Take action

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One more two-minute action: you can also tell CMS directly what you think of the proposed rule. Public comments are accepted until September 14, 2026.

Comment on the rule at Regulations.gov ↗

WHY I'M ASKING

A Note from Dr. Cory Maughan
As an independent dermatologist, I've chosen to build a practice focused on caring for patients, not a healthcare system. Many of my Medicare patients rely on us for regular skin cancer screenings, chronic skin conditions, and procedures that help them stay healthy. They deserve access to high-quality care without paying more simply because where they're treated has changed.

The proposed Medicare payment changes raise concerns about the future of independent physician practices across the country. If more community practices are forced to close or become part of larger hospital systems, patients may face fewer choices and higher out-of-pocket costs for the same care.

While it may seem like it’s about increasing physician pay, it's actually about preserving access to affordable, independent medical care for our patients and our community. If this issue matters to you, I hope you'll take a few minutes to learn more and make your voice heard.

Thank you for your support.
Dr. Cory Maughan
Sources
1. CMS, CY 2027 Physician Fee Schedule Proposed Rule (CMS-1848-P), displayed July 14, 2026; comments due September 14, 2026. CMS fact sheet · Federal Register

2. Proposed CY 2027 conversion factors: $32.8409 (non-QP, −1.68%) and $33.1693 (QP, −1.19%) vs. CY 2026; proposed Medicare Economic Index +2.5%. Same sources as [1].

3. American Medical Association, statement on bipartisan Medicare reform, July 15, 2026.
AMA statement

4. H.R. 8163, Provider Reimbursement Stability Act (approved by House Ways & Means 44–0, May 21, 2026); Patients First Act (introduced July 15, 2026). AMA summary · Patients First Act release

5. Physicians Advocacy Institute / Avalere Health, Physician Employment Trends and Practice Acquisitions 2018–2026 (data as of Jan 1, 2026): 82.0% of physicians employed by hospitals or corporate entities; 63.9% of practices non-physician-owned. PAI–Avalere report. AMA 2024 Physician Practice Benchmark Survey: 42.2% of physicians in private practice vs. 60.1% in 2012. AMA survey (PDF)

6. AMA 2024 Benchmark Survey: 70.8% of physicians whose practices were sold to hospitals/health systems cited the need to negotiate higher payment rates as an important reason. AMA survey (PDF)

7. MedPAC, June 2023 Report to Congress, Ch. 8: echocardiogram paid 194% more in hospital outpatient departments; aligning payment across settings would have cut beneficiary cost sharing by $1.5B in 2021. MedPAC report (PDF). KFF: drug/chemo administration paid 129–211% more in HOPDs; heaviest chemotherapy users would save ~$1,055/yr in cost sharing under site-neutral payment. KFF analysis

8. Stateline / KFF Health News reporting on facility fees ($503, $488, $355 patient examples). Stateline · PIRG

9. Committee for a Responsible Federal Budget: full site-neutral payment would reduce beneficiary premiums and cost sharing by over $90B across a decade. CRFB analysis

10. CMS / American Academy of Dermatology: Proposed CY 2027 policy adjustments on CPT Modifier 25 and payment reductions for same-day evaluation and management services when paired with minor procedures. CMS-1848-P


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