CMS Proposes 2.8 Percent Cut to Medicare Physician Fees

Several medical industry groups issued critical statements, arguing that the cut to Medicare physician fees is burdensome.

Doctors perform open heart surgery on a young patient at Children's Hospital in Los Angeles, Calif., on March 24, 2008. Bob Riha, Jr./Children's Hospital Los Angeles via Getty Images

The Centers for Medicare and Medicaid Services (CMS) has proposed a series of changes to the Medicare physician fee schedule, including a 2.8 percent cut to physician payments that has drawn criticism from industry groups who complain of increased operating costs due to inflation.

CMS said in a July 10 statement that its proposed updates to the Medicare Physician Fee Schedule (PFS) for 2025 include the creation of additional primary care management services, such as new payments for safety planning interventions, telehealth flexibilities for opioid treatment programs, and incentives to improve access to care in rural areas.