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This annual proposed rule would revise payment polices under the Medicare physician fee schedule, and make other policy changes to payment under Medicare Part B, including for telehealth and primary care, to promote rural health and support deregulation.  These changes would apply to services furnished beginning January 1, 2027.  Additionally, this rule proposes updates to the Quality Payment Program.

Statement of Need:

The statute requires that we establish each year, by regulation, payment amounts for all physicians' services furnished in all fee schedule areas. This rule would implement changes affecting Medicare Part B payment to physicians and other Part B suppliers and updates to the Quality Payment Program. The final rule has a statutory publication date of November 1, 2026, and an implementation date of January 1, 2027.

Summary of the Legal Basis:

Section 1848 of the Social Security Act (the Act) establishes the payment for physician services provided under Medicare. Section 1848 of the Act imposes an annual deadline of no later than November 1 for publication of the final rule or final physician fee schedule.

Alternatives:

None. This rule implements a statutory requirement.

Anticipated Costs and Benefits:

Total expenditures will be adjusted for CY 2027.

Risks:

If this regulation is not published timely, physician services will not be paid appropriately, beginning January 1, 2027.