Goodsurance

Policy & oversight

Medicare Proposes Lower Payments for Imaging Services at Off-Campus Hospital Sites, With Savings Projected for Patients

The 2027 hospital outpatient proposed rule would pay physician-office rates, rather than higher hospital rates, for X-rays and MRIs at off-campus hospital departments, with CMS estimating 260 million dollars in Medicare savings and 70 million dollars in lower patient cost-sharing in the first year. Comments are due August 31.

By the Goodsurance editorial teamAugust 17, 2026

CMS issued the Calendar Year 2027 Hospital Outpatient Prospective Payment System proposed rule, known as CMS-1850-P, in early July 2026 with a public comment deadline of August 31, 2026. Among its provisions, the rule would apply physician fee schedule payment rates, rather than the higher hospital outpatient rates, for imaging services without contrast when provided at off-campus provider-based departments of hospitals.

Off-campus provider-based departments are hospital-affiliated facilities located away from a hospital's main campus. Medicare currently pays more for the same imaging services at these locations than at freestanding physician offices. CMS cited this disparity as a driver of higher beneficiary premiums and cost-sharing.

CMS estimates the imaging-specific proposal would reduce Medicare Part B spending by approximately 260 million dollars in the first year, comprising 190 million dollars in program savings and 70 million dollars in lower beneficiary premiums. Patient cost-sharing at affected sites would fall by an estimated additional 70 million dollars. Rural sole community hospitals would be exempt from the change.

The proposed rule also implements a new requirement from the Consolidated Appropriations Act of 2026: off-campus provider-based departments must submit attestations demonstrating they have complied with provider-based regulations within the prior two years. Starting January 1, 2028, failure to meet the attestation standard would mean the facility no longer qualifies for the higher hospital outpatient rates.

Overall, CMS proposes a 2.4 percent update to hospital outpatient payment rates for 2027, based on the projected market basket increase minus a productivity adjustment. The 340B drug payment provisions in the same proposed rule, which would reduce Medicare drug payments at eligible facilities, were covered when the rule was first released.

In plain words

Some hospitals have clinics or offices located away from their main building. Medicare pays more for services at those off-campus locations than at regular doctor offices, even when the service is identical. CMS now wants to change that rule for imaging tests like X-rays and MRIs. Under the proposal, Medicare would pay the lower doctor-office rate for imaging at off-campus hospital sites. This could mean smaller copays for patients who get imaging there. CMS estimates patient cost-sharing would fall by about 70 million dollars per year if the change is finalized. Off-campus hospital sites would also need to prove they meet certain standards by 2028 to keep getting higher payments. The public has until August 31 to comment.

Source: CMS
Read at the source →

More news

Other stories on what is moving in Medicare.

Policy & oversight

New Mandatory Medicare Advantage Prior Authorization Data Shows About 12 Percent of Standard Requests Were Denied in 2025

A KFF analysis of the first-ever publicly required prior authorization metrics finds wide variation across insurers and notable gaps in what the data can tell patients about their own plan's behavior.

August 14, 2026

Policy & oversight

Senate Passes Rural Community Hospital Medicare Reimbursement Demonstration Extension by Unanimous Consent; House Has Not Yet Acted

A bipartisan bill that would extend cost-based Medicare reimbursement testing for small rural hospitals cleared the Senate in May 2026 without a single objection, but the House companion has sat at the desk with no floor vote as the August recess ends.

August 12, 2026

Policy & oversight

OIG: Medicare Improperly Paid 15.2 Million Dollars for Sacroiliac Joint Injections

A new federal audit found that physician billing for lower-back and pelvis pain injections did not meet Medicare coverage and documentation rules, producing millions in improper payments.

August 11, 2026

Policy & oversight

Nevada Doctor Indicted in Alleged 95 Million Dollar Medicare Wound Care Fraud

A Henderson physician allegedly billed Medicare for costly skin-graft products applied to patients who did not need them, including people in hospice care, a federal indictment says.

August 11, 2026

Policy & oversight

CMS Opens Annual Medicare Compliance Conference to Sharpen Billing Accuracy Across Fee-for-Service

Medicare contractors and program integrity experts gathered in Charlotte this week to train billing professionals on accurate claims submission for Part A, Part B, home health, hospice, and durable medical equipment.

August 11, 2026

Policy & oversight

OIG Found More Than 15 Million Dollars in Medicare Payments Where Emergency Room Billing Codes Were Used at Non-Emergency Sites

A March 2026 federal audit identified improper and potentially improper Medicare payments made when physicians and hospitals used emergency department billing codes for care not actually delivered in an emergency department, and found that Medicare lacked automated safeguards to catch the mismatches.

August 8, 2026