AAOS welcomes key improvements in CMS final CY 2027 Physician Fee Schedule, calls for continued progress

The final rule preserves access to care by mitigating proposed cuts to orthopaedic procedures

WASHINGTON, Nov. 4, 2026 /PRNewswire/ -- The American Association of Orthopaedic Surgeons (AAOS) is encouraged by several positive developments in the Centers for Medicare & Medicaid Services' (CMS) final calendar year 2027 Medicare Physician Fee Schedule (PFS) that help protect patient access to musculoskeletal care, while underscoring the need for broader Medicare physician payment reform.

Proposed cuts to total knee arthroplasty, total hip arthroplasty, total shoulder arthroplasty, and shoulder hemiarthroplasty were reduced by nearly 50% in the CY 2027 PFS. As a result of extensive feedback from physicians, medical societies, and lawmakers who raised concerns about the proposal's impact on patient access and physician practices, CMS shifted course from even more drastic cuts to the relative value units for these procedures.

More than 22 million Americans currently live in the 1,400-plus U.S. counties that lack an orthopaedic surgeon¹. While AAOS is grateful that CMS responded to feedback from orthopaedic advocates, cuts of any magnitude could further deepen existing workforce shortages, limit patient choice, and create additional barriers to timely care for Medicare beneficiaries and other patients alike.

"Today's decision represents meaningful progress for patients and the physicians who care for them," said AAOS President Wilford K. Gibson, MD, FAAOS. "We appreciate CMS for listening to the concerns of the orthopaedic community and recognizing the real-world impact these policies can have on patient access to care. We are also grateful to the congressional leaders who helped raise awareness of these concerns and their potential impact on patients and physician practices, particularly independent practices and those serving rural or underserved communities.

"There is more work ahead to build a Medicare payment system that reflects the realities of delivering high-quality musculoskeletal care and supports sustainable physician practices. AAOS will continue working collaboratively with CMS and Congress to advance policies that preserve access to musculoskeletal care and help keep our nation in motion."

AAOS members can learn more about the final rule, which is effective Jan. 1, 2027, by visiting the AAOS CMS Payment Resource Center.

To view the final rule on Federal Register, visit: www.federalregister.gov/d/2026-22743. 

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About AAOS 
The American Association of Orthopaedic Surgeons (AAOS) Office of Government Relations promotes and advocates the viewpoint of the orthopaedic community before federal and state legislative, regulatory and executive agencies. Based in Washington, D.C., with additional staff in AAOS' headquarters in Rosemont, Illinois, the Office of Government Relations identifies, analyzes and directs all health policy activities and initiatives to position AAOS as the trusted leaders in advancing musculoskeletal health.

For more information on all AAOS advocacy efforts, visit https://www.aaos.org/advocacy/, and follow AAOS Advocacy on X and LinkedIn.

SOURCE American Association of Orthopaedic Surgeons