Proposed CMS rule threatens 20% pay cut for hip, knee replacements

Advertisement

A proposed Medicare rule could cut physician reimbursement for total hip and knee replacement procedures by 20% in 2027, the OrthoForum warned. The alliance represents 96 independent orthopedic practices and more than 4,100 physicians nationally.

The group said the CMS calendar year 2027 Medicare Physician Fee Schedule proposed rule would apply the cut to procedures billed under CPT codes 27130 and 27447, covering total hip and total knee replacements. The proposed reduction follows an 8% cut to Medicare reimbursement for orthopedic joint replacement surgeons that took effect in 2026, according to a July 16 news release. 

The group added that the proposal would reduce physician payment for the procedures even as CMS has proposed payment increases for hospitals and other facilities in 2027. OrthoForum said the widening gap could add financial pressure on independent orthopedic practices and threaten Medicare beneficiaries’ access to musculoskeletal care.

The proposed rule also would lower the Medicare Physician Fee Schedule conversion factor 1.19% for clinicians in qualifying alternative payment models and 1.68% for other clinicians in 2027, as a temporary 2.5% payment increase enacted for 2026 expires. 

Comments on the rule are due Sept. 14. OrthoForum plans to submit formal comments to CMS and said it will continue evaluating the effects of Medicare payment reductions on independent physician practices, workforce stability and patient access to musculoskeletal care, according to the release.

At the Becker’s 32nd Annual Meeting: The Business and Operations of ASCs, taking place October 29-31 in Chicago, ASC leaders, surgeons and healthcare executives will explore strategies to drive growth, enhance operational performance, navigate reimbursement challenges and prepare for the future of ambulatory surgery. Apply for complimentary registration now.

Watch On-Demand Webinar

ASC development + private equity: How to build value from day one

Presenters: Andrew HrankaWendy Bruno Thomson, MBA, LHARichard Romero, CVA, ABV, FHFMA, PAHM

Advertisement

Next Up in Orthopedic

Advertisement