The final Medicare Physician Fee Schedule for 2026 has now taken effect. Under the new rule, Center for Medicare Services (CMS) finalized two separate Medicare conversion factors depending on participation in a qualifying Alternative Payment Model (APM). For physicians who do not qualify as APM participants, the 2026 conversion factor is $33.4009, representing a 3.26% increase from the 2025 conversion factor of $32.35. For physicians who do qualify as APM participants, the 2026 conversion factor is $33.5675, a 3.77% increase over 2025.

While the increase in the conversion factor marks a positive shift compared to prior years’ reductions, the practical impact on revenue will vary by specialty, service mix, practice setting, and site-of-service adjustments finalized in the rule.

To see the CMS press release, click here, and to see the full 2026 Fee Schedule, click here.