Industry Groups Warn CMS' 2026 Fee Schedule Could Undermine Value-Based Care - MedCity News
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Industry Groups Warn CMS' 2026 Fee Schedule Could Undermine Value-Based Care - MedCity News
"Healthcare groups are reacting to CMS' proposed 2026 Physician Fee Schedule mainly with concern, arguing that it needs significant revisions in order to avoid destabilizing providers and undermining value-based care momentum. The proposal, issued in July, seeks to establish two new conversion factors - one for physicians in advanced alternative payment models (APMs) and another for those who aren't. CMS plans to increase the APM rate by 3.83% in 2026, while the non-APM rate would go up by 3.62%."
"These increases reflect several factors - a small statutory bump (0.75% for APM participants and 0.25% for others), an across-the-board 2.5% increase required by recent legislation, and an additional 0.55% adjustment tied to CMS' proposed changes in physician work relative value units (wRVUs). For 2026, CMS is also proposing to trim payments by applying a 2.5% "efficiency adjustment" to certain wRVUs."
CMS proposes separate conversion factors for physicians in advanced alternative payment models (APMs) and those who are not, increasing the APM factor by 3.83% and the non-APM factor by 3.62% for 2026. The changes reflect a statutory bump (0.75% for APM participants, 0.25% for others), a 2.5% across-the-board legislative increase, and a 0.55% adjustment tied to proposed physician work relative value unit (wRVU) changes. CMS also proposes a 2.5% "efficiency adjustment" to certain wRVUs, lowering credited physician work and reducing reimbursement for affected codes. Proposed reductions to indirect practice expense payments would lower facility-based service reimbursements while modestly increasing office-based payments. The Medical Group Management Association (MGMA) and other healthcare groups objected, saying the proposed rates do not offset prior cuts and could destabilize providers and undermine value-based care progress. CMS set a comment deadline of September 12.
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