Docs in for Another Medicare Pay Cut, CMS Says

— 2027 proposed fee schedule calls for 1.68% cut for those not part of alternative payment models

July 14, 2026

• 2 min read

Physicians would receive a 1.68% pay cut -- or a 1.19% pay cut for those participating in advanced alternative payment models -- in 2027 under the proposed Medicare Physician Fee Schedule released Tuesday by the Trump administration.

The proposal also includes a provision to sunset in 2029 the Merit-Based Incentive Payment System (MIPS), which rewards physicians for improvements on certain quality measures, and move clinicians "toward more clinically meaningful specialty-focused MIPS Value Pathways," CMS said in a press release. And it is proposing changes to encourage more physicians to join its most popular accountable care organization, the Medicare Shared Savings Program (MSSP).