The American Medical Association (AMA) is cautioning that, while the 2026 Medicare Physician Fee Schedule includes several positive changes—such as a one-time 2.5% payment update and expanded telehealth provisions—other finalized policies could unintentionally harm private practices and patient access nationwide.
In formal comments submitted to the Centers for Medicare & Medicaid Services (CMS), the AMA urged greater collaboration to protect seniors’ access to care and sustain physician practices amid growing financial pressures.
“That physicians are not facing a reduction in reimbursements—as we have in the past—is a significant positive for 2026 and a win for patients’ access to care,” said AMA President Bobby Mukkamala, M.D. “Yet, this one-time correction does not keep up with rising costs, and many private practices fear it will put them at a disadvantage merely for treating patients in hospitals or surgical centers.”
Mukkamala emphasized that the AMA will continue working with CMS to monitor real-world effects of the new rule and provide data to help keep practices viable during a nationwide physician shortage.
Key Changes and Concerns
The 2.5% pay increase will help stabilize physician payments in the short term. Still, the AMA is advocating for inflation-based adjustments tied to the Medicare Economic Index, aligning with recommendations from the Medicare Payment Advisory Commission. The group also urged the Trump Administration and Congress to enact long-term, cost-linked updates to avoid further erosion of practice stability.
The AMA welcomed CMS’s decision to make permanent several telehealth flexibilities, including removing frequency limits for hospital and skilled-nursing-facility patients, continuing virtual supervision for most services, and allowing teaching physicians to oversee residents in all settings virtually.
However, the AMA criticized two newly finalized CMS proposals that could cut payments for more than 7,000 physician services—95% of all services nationwide—and reduce reimbursement for care delivered in hospital and surgical center settings. These changes, the AMA warned, do not reflect the actual costs borne by independent physicians and could accelerate consolidation in the health system.
Preliminary estimates indicate that 37% of oncologists and 37% of OB-GYNs could face 10% to 20% payment cuts. The AMA called on CMS to use verified data from the Physician Practice Information Survey before implementing broad adjustments that may jeopardize independent practices.
“At a time of increasing consolidation in health care, this rule could make it harder for independent physicians to remain viable,” Mukkamala said. “We look forward to working with CMS to ensure Medicare patients can continue to see their doctors.”