Proposed Medicare Cuts Target Private Practices for $724 Million

The Centers for Medicare & Medicaid Services (CMS) plans to change how it compensates clinicians who perform a procedure alongside an evaluation and management service on the same day. Under the 2027 Physician Fee Schedule, CMS would pay the highest-valued service in full while cutting reimbursement for subsequent qualifying services by 50%.

Jiro Health’s analysis suggests the policy creates an uneven playing field. Six specialties, led by dermatology, account for roughly $732 million of the projected reductions. Dermatology alone faces $395.4 million in cuts, while podiatric medicine, orthopaedics, otolaryngology, ophthalmology, and family medicine absorb the remainder. Greg Field, CEO of Jiro Health, argues that while the policy is framed as a technical adjustment, the real-world data highlights a significant strain on independent clinics.

Physician groups have voiced strong opposition, with approximately 85% of the 10,000 public comments submitted to CMS rejecting the change. Critics warn that the policy could force patients to return on separate days for necessary care to ensure providers are adequately compensated. With the final fee schedule expected this fall, private practice owners are bracing for potential changes to staffing and service models ahead of the proposed January 1, 2027, implementation date.