This afternoon, the Centers for Medicare and Medicaid Services (CMS) released the Calendar Year (CY) 2026 Medicare Physician Fee Schedule Proposed Rule. STS has compiled a summary of the rule’s key provisions affecting cardiothoracic surgery.  

Physician Payment

Starting in calendar year (CY) 2026, the Centers for Medicare & Medicaid Services (CMS) will introduce two distinct conversion factors under the Medicare Access and CHIP Reauthorization Act (MACRA). Clinicians participating in Advanced Alternative Payment Models (APMs) will receive a conversion factor of $33.59, which reflects a 3.83 percent increase. Meanwhile, all other fee-for-service clinicians under the Merit-based Incentive Payment System (MIPS) will have a conversion factor of $33.42, representing a 3.32 percent increase. This new structure of two conversion factors replaces the previous lump-sum bonuses for physicians participating in APMs. Additionally, this is the first time in several years that CMS has proposed a positive adjustment to the conversion factor.

It is important to note that reimbursement still lags behind inflation.

Quality Payment Program (QPP)

CMS is moving forward with the requirement for mandatory subgroup reporting for all multispecialty groups participating in a MIPS Value Pathway (MVP) during the 2026 performance year, which affects payment for CY 2028. Currently, cardiothoracic surgery measures are included in the Surgical Care MVP. This group of measures is designed for surgical specialists to report separately from traditional MIPS. STS has submitted detailed recommendations to CMS to improve the Surgical Care MVP.

Deregulation Request for Information (RFI)

CMS is seeking feedback on ways to streamline regulations and reduce administrative burdens on providers and other stakeholders participating in the Medicare program. STS has previously responded to similar RFIs, offering recommendations to use existing clinical data registries instead of extraneous quality programs like MIPS, to reconsider global surgical package poster-operative data reporting, and to rescind the Appropriate Use Criteria program.

 

Jul 14, 2025
2 min read

The conversion factor for the CY 2026 Medicare Physician Fee Schedule is projected to remain stable, offering a welcome break from years of fluctuating reimbursement policies.

Jul 14, 2025
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DC Capitol

Congress has passed a finalized reconciliation package that includes a 2.5% increase in physician payment for 2026. This is a substantial win for our community, especially after experiencing a 2.8% reduction in Medicare physician payments in 2025. STS will continue to advocate for long-term reform in Medicare physician payment policies.    

2 min read
Molly Peltzman, STS Advocacy

STS submitted a response to the proposed Centers for Medicaid & Medicare Services (CMS) hospital inpatient rule.  

Key highlights included:  

  • Recommendations for improving the Transforming Episode Accountability Model, which will impact all coronary artery bypass grafting procedures at select hospitals starting in January 2026. 
  • Suggestions for programs like the Merit-Based Incentive Payment System, global surgical post-operative data reporting, and the appropriate use criteria program for deregulation.
  • Examples of ways CMS can enhance data quality through standardized collection of unique device identifiers and improved imaging interoperability. Additionally, we continue to advocate for access to federal claims data to support long-term clinical outcomes research.  

Read the full letter.  

Senate Intensifies Negotiations on the Reconciliation Bill

The Senate needs to hear from surgeons about reconciliation! Make your voice heard now.

  • There are key concerns regarding the legislation, including substantial cuts to Medicaid, which could leave millions of people uninsured.
  • The proposed increases to Medicare physician payments are modest despite ongoing financial pressures.

Legislation includes significant changes to federal student loan programs that could reduce access to affordable financing for medical education.  

Jun 16, 2025
1 min read
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US Capitol building with blue skies

In late May, House Republicans narrowly passed a sweeping bill aimed at advancing President Trump’s domestic agenda with a vote of 215 to 214. The bill now heads to the Senate, where additional changes are expected. STS is actively engaging with congressional offices to raise several areas of concern and improve the bill:

2 min read
Derek Brandt, JD, STS Advocacy
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advocacy

Last week, the Energy & Commerce Committee advanced its section of the budget reconciliation package, which includes approximately $880 billion in federal spending cuts—most of which target the Medicaid program.

4 min read
Haley Brown, STS Advocacy
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Capitol building

In April, the Centers for Medicare & Medicaid Services (CMS) released the proposed rule for the fiscal year (FY) 2026 Inpatient Prospective Payment System. This annual regulation includes several initiatives that will directly impact cardiothoracic surgery.

2 min read
Derek Brandt, JD, STS Advocacy
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US Capitol building with trees

Last week, the US Department of Health and Human Services (HHS) announced a sweeping restructuring plan that will reduce the agency’s workforce by 10,000 full-time employees and consolidate 28 divisions into 15. This plan is part of broader workforce reductions across the administration, which will decrease HHS’s total number of employees from 82,000 to 62,000.

3 min read
Derek Brandt, JD, STS Advocacy
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US Capitol Dome

Mehmet Oz, MD, has been confirmed as the new Administrator for the Centers for Medicare & Medicaid Services (CMS). As a cardiothoracic surgeon with a strong background in medical innovation, Dr. Oz will oversee policies that impact Medicare and Medicaid beneficiaries, as well as physicians, hospitals, and healthcare providers across the country.

2 min read
Molly Peltzman, STS Advocacy
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advocacy

Robert F. Kennedy Jr, the newly appointed Department of Health and Human (HHS) Secretary, has introduced plans to significantly restructure health agencies under his purview. This restructuring is based on President Trump's Executive Order, “Implementing the President’s ‘Department of Government Efficiency’ Workforce Optimization Initiative.”

It will include two major actions:

3 min read
Molly Peltzman, STS Advocacy
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Capitol building

Since taking office in January, the Trump administration has issued a series of executive orders (EOs) and actions that have significant implications for the healthcare landscape. These policies could affect hospitals, Medicare coverage, and regulatory oversight.

2 min read
Molly Peltzman, STS Advocacy

Fifty-five STS advocates gathered in Washington, DC, on March 4 to engage with lawmakers on important policy issues, including protecting Medicare reimbursement and NIH research funding, and expanding access to lung cancer screenings. Participants from 23 states and the District of Columbia met with more than 110 Senate and House offices, while also participating in various off-the-Hill events and meetings with lawmakers.

The timing of this event was especially critical, as Washington, DC, is currently engaged in negotiations over government funding. Our advocates took this opportunity to present the priorities for the STS, its members, patients, and the communities they serve. Throughout the day, advocates worked to educate lawmakers and their staff, urging them to address the ongoing threats to research funding and physician reimbursement.

Leadership Efforts Drive Key Healthcare Legislation and Recognition

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STS 2025 Advocate of the Year

Dr. Tessa London-Bounds, STS 2025 Advocate of the Year, along with Amanda Crabtree, RN, shared their experiences as advocates, highlighting their work to improve access to care for Kentucky patients. Their advocacy efforts led to the unanimous passing of House Bill 31 by the Kentucky legislature, which allows Medicaid patients to use at-home blood testing machines. Gov. Andy Beshear signed the bill into law on April 4, 2024, just four months after its introduction.

 

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 2025 STS Legislator of the Year

Dr. Keith Naunheim, presented Rep. Mariannette Miller-Meeks (R-IA) with the 2025 STS Legislator of the Year award. As a longtime ally for STS, Rep. Miller-Meeks has championed efforts to address cuts to Medicare physician reimbursements. She also played a key role in promoting the Accelerating Kids’ Access to Care Act through the House of Representatives. Additionally, her leadership was instrumental in spearheading a bipartisan "Dear Colleague" letter last year that garnered 232 signatures in support of physician reimbursements. 
 

Mar 14, 2025
2 min read