The U.S. Centers for Medicare & Medicaid Services finalized a 3.26% increase to the conversion factor in the final Medicare Part B Physician Fee Schedule for 2026, resulting in physical therapists, on average, receiving a 1.75% increase in reimbursement under the fee schedule.

What You Need to Know

Reflecting the move toward value-based payment, CMS has changed the fee schedule to have two conversion factors: one for qualifying alternative payment model participants, aka QPs, and one for physicians and practitioners who are not QPs, which includes most physical therapists. Since CMS made changes to many codes’ relative value units, or RVUs, it’s important to look at the individual codes to truly see the impact of this year’s fee schedule on payment. While CMS set aside survey data relating to practice expenses that was favorable to PTs, the agency did make positive strides in reimbursement for telehealth services and remote therapeutic monitoring. APTA continues to advocate for reforms to the Medicare Physician Fee Schedule to increase payment, reduce administrative burden, and provide more flexibility to both patients and providers.