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CMS proposes major Medicare physician payment overhaul to boost primary care

By Thomson Reuters Jul 14, 2026 | 4:55 PM

July 14 (Reuters) – The Centers for Medicare & Medicaid Services on Tuesday proposed changes to Medicare’s decades-old physician payment system, saying the updates would support the Trump ​administration’s push to emphasize primary and preventive care ‌rather than treatment after patients become ill.

Here are some details:

• The proposal would update Medicare’s Physician Fee Schedule, which is used to pay doctors and other clinicians for services provided to beneficiaries.

• CMS said ‌the ​changes are intended to make payments more ⁠accurate by accounting for ⁠the time, resources and complexity involved in care.

• CMS also said it wants to increase transparency around how physician payment rates are calculated and strengthen oversight of billing ​practices in cases where claims may not accurately reflect services provided.

• The agency said the changes would move ⁠Medicare away from paying mainly for ⁠the volume of services and toward rewarding better ​outcomes for patients.

• “We’re proposing some of the most significant Medicare ​reforms in recent years to strengthen primary care, expand ‌accountable care, and modernize physician payment,” CMS Administrator Dr. Mehmet Oz said in the announcement.

• The proposed physician payment changes are designed to support primary care, preventive services and ⁠better coordination for people covered by Medicare, CMS said.

• CMS said it would end traditional Merit-based Incentive Payment System (MIPS) reporting in 2029 ⁠and move clinicians ‌toward more specialty-focused reporting pathways.

• The agency ⁠also proposed new reporting options for doctors ​who ‌treat diabetes, high blood pressure and hospital ​patients,

• The change ⁠would stop $2.38 billion in bonus payments from going to clinicians who are not in advanced value-based care programs, the agency said.

• The proposal is open for public comment before CMS issues a final rule.

(Reporting by Padmanabhan Ananthan in Bengaluru; Editing ​by Tasim Zahid)