ASTRO Official Statement:
Medicare Finalizes Significant Radiation Therapy Payment Changes for 2026
Today, the Centers for Medicare and Medicaid Services (CMS) issued the final Medicare Physician Fee Schedule rule for 2026, with significant swings in payment among radiation services, among practice settings and among technical and professional payments. ASTRO is disappointed by additional cuts to radiation oncology, as CMS estimates a -1% overall impact for radiation oncology.
The agency expects that 41% of radiation oncologists will see a decline of -2% to -5% in total RVUs in 2026. CMS estimates a broad distribution of payment impacts among radiation oncologists due to the variety of policy changes.
Across the fee schedule, CMS made almost no changes to the policies they proposed in July. ASTRO is pleased that CMS finalized its proposal to use relative values for traditionally more stable hospital outpatient data to inform freestanding technical payments for the revised treatment delivery codes 77402, 77407 and 77412.
However, ASTRO strongly disagrees with CMS’ decision to maintain the proposed hospital payment group assignments for the revised codes, resulting in RVUs for 77402 at 2.71; 77407 at 6.47; and 77412 at 14.45. ASTRO remains deeply disappointed by the finalized valuation for 77407. Since the proposed rule was released in July, we have consistently engaged with CMS to raise concerns that the proposal for this essential service was not accurately valued and to strongly urge reconsideration in the final rule. Unfortunately, those recommendations were not adopted. We will continue to communicate our concerns to the agency, as we believe this outcome is unfair to our members and the patients they serve.
While this represents a potentially reasonable RVU for the most complex code (77412) and treatments, the RVUs for the intermediate code (77407) and simple code (77402) are inappropriately low. Of note, freestanding centers will benefit from CMS finalizing a change to the indirect practice expense methodology that shifts resources to freestanding centers. In addition, since hospital chargemaster data will be used to inform reimbursement for the revised treatment delivery codes, both hospital and freestanding reimbursement will adjust over time to reflect these costs. CMS has not yet issued the hospital outpatient payment final rule.
ASTRO is also disappointed that CMS finalized a new efficiency adjustment that will reduce physician work relative value units by 2.5% for many professional codes, which will negatively impact radiation oncologists and specialists. ASTRO is collaborating with a broad coalition of stakeholders to express our unified concern that the efficiency adjustment is both arbitrary and divisive within the physician community. Unfortunately, despite the strong and consistent opposition from ASTRO and affected specialties, CMS did not act on these concerns.
ASTRO will continue working with the radiation oncology and physician community to advocate on these and other outstanding physician payment issues. This rule underscores concerns about the volatility of the fee schedule, which is among the reasons ASTRO continues to pursue the Radiation Oncology Case Rate Act (H.R. 2120/S. 1031), which would freeze radiation therapy payments upon passage and stabilize payments over the long term. More than 135 organizations across the radiation oncology community support the ROCR Act.
ASTRO will provide a detailed summary and more analysis in coming days.