Doctors Face Medicare Payment Cut Under New Rules

Medical groups argue that the changes will force their members to reduce access to care for Medicare patients.

The US Department of Health and Human Services building is seen in Washington, DC, on July 22, 2019. (Photo by Alastair Pike / AFP) Photo by ALASTAIR PIKE/AFP via Getty Images

The federal government is moving forward with an agenda to set Medicare reimbursement rates for physicians and hospitals next year despite pushback from industry groups.

Under the 3,088-page finalized rules published Nov. 1 by the Centers for Medicare and Medicaid Services (CMS), physicians will see reimbursement rates drop by 2.93 percent in 2025. This new rate, combined with other regulatory adjustments, sets the new conversion factor—the amount Medicare pays per relative value unit (RVU)—at $32.35, down 2.8 percent from the 2024 rate of $33.29 per RVU.