Medicare Cuts Physician Pay in 2027

CMS finalized a rule reducing Medicare payments to doctors starting in 2027 after a temporary congressional increase expired.

Updated on Nov. 4, 2026 in Healthcare

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Should Medicare cut physician pay even as critics warn of reduced access?

The Centers for Medicare & Medicaid Services finalized a rule reducing doctors' pay under Medicare in 2027. The reduction follows the expiration of a 2.5% legislative bump from Congress.

Why it matters

Medicare's physician fee schedule sets reimbursement for a large share of the nation's doctor visits and procedures, so the cut directly affects physician income and the financial pressures on medical practices. The change also reflects broader cost-cutting efforts by the Trump administration.

The finalized rule takes effect in 2027 after a 2.5% congressional bump to physician pay expired. The stub does not provide the magnitude of the resulting reduction.

The players

Centers for Medicare & Medicaid Services (CMS)

The federal agency that administers Medicare and sets physician payment rules through the physician fee schedule.

Mehmet Oz

The CMS Administrator and a physician who leads the agency overseeing Medicare payment policy.

The details

CMS finalized the rule, which reduces doctors' pay under Medicare through the physician fee schedule. The reductions follow the expiration of a 2.5% legislative increase that Congress had provided.

2027: Reduced Medicare physician pay takes effect.

Industry Context

The reduction arrives as the Trump administration pursues broader cost-cutting efforts across federal health programs. It follows the expiration of a 2.5% congressional increase that had temporarily raised Medicare physician payments.

Doctors who accept Medicare will receive lower payments starting in 2027, which may affect practice finances and the availability of services for patients. Patients should watch for changes in how practices structure fees and accept new Medicare patients.

The takeaway

Medicare physician payment changes can ripple into practice finances and patient access, so tracking the fee schedule is useful for anyone affected by the program.