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Brace for impact: CMS announced a reduction to physician fees for CY 2027 that would, in aggregate, lower professional fees across services in 2027. The conversion factor (CF), one of CMS’ primary ratesetting mechanisms, would drop between 1% and 2% depending on the professional fee setting.
 
CMS also announced in the proposed 2027 Medicare physician fee schedule, released today, that it may seek an alternative method of calculating fees in a repudiation of the AMA’s valuation system. In fact, the agency questions whether it should move away from the CPT code set entirely. Also, CMS is eyeing a revamped system for primary care payments and is teasing new codes that are set to come online next year.
 
 
Proposed changes to the ICD-10-CM code set include new codes for ectopic pregnancy, vanishing twin syndrome, cardiomyopathy, osteomyelitis, numerous toxic effect codes and personal history of clostridiodes difficile infection, among others.
 
The update, which includes 184 new codes, 30 invalidated codes and four revised codes, was released Friday, April 10, as part of the proposed Medicare FY2027 Hospital Inpatient PPS (IPPS) rule. If finalized, the changes will take effect Oct. 1, 2026.
 
 
You’ll find a fresh batch of CPT codes that you can begin reporting on Jan. 1, 2026, with 288 new codes coming online, including two new E/M codes covering remote physiologic monitoring (RPM). The code update, announced with the release of the 2026 CPT Manual, also includes 46 revised code descriptors and 84 deleted codes.
 
 
Professional Part B Medicare fees are on the upswing overall, but site of service will be a huge factor in reimbursement in 2026. The proposed 2026 Medicare physician fee schedule, released today, boosts the Part B conversion factor for CY 2026, adds billing opportunities for behavioral health services, previews new codes and updates the agency's quality reporting programs.
 
CMS also signaled other notable priorities, including significant changes to the way the agency calculates rate-setting on a per-code basis, a new payment model called the Ambulatory Specialty Model (ASM) that's focused on the treatment of heart failure and lower back pain, telehealth flexibilities and more.
 
 
Start training your staff on the diagnosis code changes that will go into effect Oct. 1. CMS will adopt the ICD-10-CM additions, revisions and deletions that it previewed in April.
 

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