Medicare finalizes controversial cut to specialty care next year

Medicare has locked in a controversial pay cut for specialty doctors next year, normalizing reimbursement between specialists and primary care doctors and curbing the influence of a powerful physician association in setting rates.

The CMS finalized the 2026 Medicare physician fee schedule on Friday. The massive payment rule includes a so-called “efficiency adjustment,” which reduces payment for thousands of services including surgeries, outpatient interventions, pain management and more starting next year.

The -2.5% adjustment is meant to account for non-time based services becoming more efficient over time as technology improves and workflows become smoother. As a result, they’re easier to perform, so Medicare is overpaying, regulators say.

“CMS is reinforcing primary care as the found