Washington – November 05, 2026 -- The Centers for Medicare & Medicaid Services (CMS) cut its proposed payment reductions for total knee, total hip and total shoulder arthroplasty, plus shoulder hemiarthroplasty, by nearly 50% in the final calendar year 2027 Medicare Physician Fee Schedule, according to the American Association of Orthopaedic Surgeons (AAOS).
CMS reverses course on relative value units after physician and lawmaker pushback
CMS moved away from even steeper cuts to the relative value units for these procedures. The agency acted after feedback from physicians, medical societies and lawmakers, who raised concerns about patient access and the financial strain on practices. The final rule takes effect Jan. 1, 2027.
AAOS warns that cuts of any size could worsen workforce gaps
More than 22 million Americans live in the 1,400-plus U.S. counties that have no orthopaedic surgeon. AAOS argues that even the reduced cuts could deepen workforce shortages, limit patient choice and add barriers to timely care for Medicare beneficiaries and other patients.
AAOS President Wilford K. Gibson, MD, called the decision "meaningful progress" and thanked congressional leaders for highlighting the risks to independent practices and to rural or underserved communities.
AAOS presses CMS and Congress for broader Medicare payment reform
Gibson said more work remains to build a Medicare payment system that reflects the realities of delivering musculoskeletal care and supports sustainable physician practices. AAOS said it will keep working with CMS and Congress on that goal.