FOR IMMEDIATE RELEASE:
October 31, 2025

Media Contact:
Samantha Tirado
Director of Policy Communications 
stirado@mgma.org 
 

MGMA Statement on 2026 Medicare Physician Fee Schedule Final Rule (October 31, 2025) 

Anders Gilberg
Senior Vice President, Government Affairs
Medical Group Management Association

"While we are pleased to see a marginal increase to the 2026 Medicare conversion factors, today’s final rule includes many policies that will threaten the financial sustainability of medical groups and cause significant disruption to their operations. Medical groups have had to deal with a 2.83% cut to the Medicare conversion factor all of 2025, and the 2026 conversion factors are barely an increase over 2024 payment levels. This does not remedy previous cuts that medical groups have absorbed due to flawed policy, nor does it address potential future cuts resulting from budget neutrality. Further undermining the 2026 conversion factor increases are arbitrary cuts to work and practice expense relative value units (RVUs) that do not accurately reflect the cost of providing care and disproportionately impact certain specialties.

Taken together, these policies reflect systemic inadequacies in the payment structure. Congress must intervene and pass legislation to provide an annual inflationary update to physician payments, ensuring Medicare is on a sustainable trajectory.”  

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About MGMA

Founded in 1926, the Medical Group Management Association (MGMA) is the nation's largest association focused on the business of medical practice management. MGMA consists of 15,000 group medical practices ranging from small private medical practices to large national health systems representing more than 350,000 physicians. MGMA helps nearly 60,000 medical practice leaders and the healthcare community solve the business challenges of running practices so that they can focus on providing outstanding patient care. Specifically, MGMA helps its members innovate and improve profitability and financial sustainability, and it provides the gold standard on industry benchmarks such as physician compensation. The association also advocates extensively on its members' behalf on national regulatory and policy issues.