Health Policy Affairs

On Nov. 4, 2026, the Centers for Medicare & Medicaid Services (CMS) issued the final rule for the Medicare Physician Fee Schedule (MPFS) for calendar year (CY) 2027.

Conversion factors

For 2027, there will be two conversion factors: one for qualifying participants in Advanced Alternative Payment Models (APMs) and one for those who do not qualify.

• Qualifying APM conversion factor: $32.9548
• Nonqualifying APM conversion factor: $32.6286

Changes by specialty

CMS estimates a positive overall payment impact for interventional radiology, though the effect varies across facility and nonfacility settings.

• Total allowed charges: +3%
• Nonfacility: +4%
• Facility: +1%

Actual payment impacts will vary based on an individual physician or practice's service mix and site of service. 

Efficiency adjustment

CMS finalized the continued application of a 2.5% efficiency adjustment to non-time-based services. 

Site-of-service differential

CMS maintained the site-of-service payment differential implemented in 2026. CMS acknowledged concerns regarding the impact on independent physicians and group practices but did not modify the policy for 2027. 

Practice expense methodology changes

CMS finalized changes to the practice expense methodology used to calculate MPFS payments, including removal of Steps 12 through 17, implementation of a practice expense stabilization factor and changes to the allocation of indirect practice expenses.

Additional topics covered in SIR's summary include:

• Code set valuations
• Global surgical packages
• Payment for telehealth services
• Virtual presence of teaching physicians
• Evaluation and management services and modifier 25
• Changes to HCPCS add-on code G2211
• Requests for information related to CPT and RUC processes and duplicate diagnostic testing