What to Know About How Medicare Pays Physicians
Issue Brief
In November 2024, CMS finalized a 2.83% decrease in the physician fee schedule conversion factor, a key aspect of payment rates under the Medicare program, resulting in a 2.93% decrease in overall payments to physicians and other clinicians. Congress has not yet enacted legislation to address this payment cut, which went into effect on January 1, 2025. This issue brief answers key questions about how physicians are paid under the Medicare program, and reviews policy options under discussion for payment reform.