KZA Alert: CMS 2.5% Physician Fee Schedule Efficiency Adjustment

KZA Alerts · May 27, 2026 · 4m

CMS has implemented a 2.5% “efficiency adjustment” to most non-time-based CPT and HCPCS codes under the CY 2026 Physician Fee Schedule—and for many procedural and surgical specialties, the impact may be greater than it initially appears. In this KZA Alert, we break down what the adjustment means, why surgeons and procedural practices may be disproportionately affected, and how the change could influence Medicare and commercial payer reimbursement moving forward.

This rapid-response update explores the financial and operational implications of the new rule, including pressure on procedural…