CMS Will Propose Joint Replacement Payment Cuts for 2027

The federal agency aims to lower physician reimbursement rates, sparking pushback from major surgical associations.

Updated on Sept. 28, 2026 in Arthritis

Isometric editorial illustration of a metallic knee joint implant model centered on a clean, sterile, off-white surface, representing health policy and medical reimbursement. — CMS has proposed a 20% reduction in Medicare reimbursement rates for joint replacement surgeries effective January 1, 2027, drawing criticism from surgical associations. AI Illustration. Upload story photo >

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Will proposed Medicare reimbursement cuts significantly increase wait times for surgeries by January 2027?

The Centers for Medicare and Medicaid Services has proposed a 20% reduction in reimbursement rates for joint replacement surgeons starting January 1, 2027. This move follows a 7.5% cut to surgical fees that took effect in 2026.

Why it matters

CMS intends to align financial incentives with improved health outcomes by citing shorter patient recovery times as justification for lower payments. Surgeons argue the reduction could threaten their ability to cover essential overhead and staffing costs.

The proposed fee changes affect a system serving 70 million total Medicare enrollees. Current wait times for hip and knee replacement surgeries typically range from 4 to 6 weeks.

The players

Centers for Medicare and Medicaid Services

This federal agency manages the Medicare program and establishes physician reimbursement rules for the United States.

American Association of Hip and Knee Surgeons

This professional organization represents surgeons and advocates for clinical standards and fair payment policies.

American Academy of Orthopaedic Surgeons

This association supports orthopedic surgeons through advocacy, education, and research initiatives.

American Medical Association

This national organization works to influence healthcare policy and promote the art and science of medicine.

The details

Physician groups including the American Association of Hip and Knee Surgeons have formally opposed the plan, warning that it could extend surgical wait times to four or five months. Surgeons utilize these reimbursement funds to manage staff salaries and operational expenses at their practices.

A 7.5% cut to surgical reimbursements took effect in 2026.
The public comment period for the CMS proposal closed September 14, 2026.
CMS is expected to make a final decision on November 1, 2026.
The proposed reimbursement cuts take effect January 1, 2027, if approved.

Health Landscape

This proposal marks a shift in federal payment philosophy under the 2027 Medicare Physician Fee Schedule Proposed Rule, which seeks to prioritize efficiency over historical payment volumes. It follows a multi-year trend of government efforts to reduce medical overhead by incentivizing shorter patient recovery periods.

If the proposed cuts are finalized, patients may face longer wait times for hip and knee replacement surgeries, potentially increasing from the current 4 to 6 weeks to as long as five months. Access to local orthopedic practices may also be impacted if surgeons face significant reductions in their operational funding.

The takeaway

Patients should monitor the upcoming CMS decision on November 1, as it directly determines future access to joint replacement procedures. Those currently considering surgery may want to consult with their healthcare providers regarding potential scheduling shifts in the coming year.