CMS Proposes Slightly Lower Physician Payment Rates for 2027 and More Accountable Care Participation

On July 14, 2026, CMS released its proposed rule for Medicare physician and other Part B provider payments in 2027, designated CMS-1848-P. The rule establishes two conversion factors, a structure Congress required starting in 2026, setting the base payment amount per unit of physician work based on whether a provider participates in alternative payment models. The proposed rate for qualifying alternative payment model participants would be 33.17 dollars per relative value unit, compared with 33.57 dollars in 2026. For physicians outside those models, the proposed rate is 32.84 dollars, compared with 33.40 dollars. CMS said the proposed decreases reflect budget-neutrality adjustments that partially offset statutory annual updates of plus 0.75 percent for alternative payment model participants and plus 0.25 percent for other physicians. The rule also includes proposed revisions to the Medicare Shared Savings Program to accelerate physician participation in accountable care organizations, provider groups that coordinate care and may share in savings they generate for Medicare. Physician groups have argued that recurring payment reductions strain practice finances and may reduce provider willingness to accept new Medicare patients. CMS will accept public comments through September 14, 2026, before issuing a final rule later in the year.