Medicare physician payment overhaul (primary-care pivot)
Advancing
In July 2026, CMS under Dr. Mehmet Oz proposed the most significant changes to the Medicare Physician Fee Schedule in years, aimed at shifting payment away from the volume of services and toward primary care and better outcomes.
The proposal includes dual conversion factors — a 3.77% increase to $33.57 for qualifying participants in advanced payment models and a 3.26% increase to $33.40 for others — along with time-based RVU refinements, stronger billing oversight, and the end of traditional MIPS reporting in 2029, per Reuters’ reporting. It would also halt about $2.38 billion in bonus payments to clinicians outside advanced value-based programs.
“We’re proposing some of the most significant Medicare reforms in recent years to strengthen primary care, expand accountable care, and modernize physician payment,” Oz said. The proposal moves “away from paying mainly for the volume of services and toward rewarding better outcomes,” according to the reporting.
Timeline
- July 2026 — CMS proposes the Physician Fee Schedule overhaul: dual conversion factors (QP +3.77% to $33.57; non-QP +3.26% to $33.40), time-based RVU refinements, stronger billing oversight, end of traditional MIPS reporting in 2029; Oz frames it as strengthening primary care and rewarding outcomes. (Reuters; Becker’s)
