2026 MPFS IPE Policy Broadly Supported by Primary Care, Specialty, and Consumer Group Stakeholders

Washington, DC — The Office-Based Facility Association (OBFA) today noted strong support from primary care, specialty and consumer organizations for the Centers for Medicare & Medicaid Services’ (CMS) update to the Indirect Practice Expense (IPE) policy under the Medicare Physician Fee Schedule (MPFS).

OBFA strongly supported CMS’ proposal to update the IPE policy in the 2026 MPFS by reducing the portion of the facility PE RVUs allocated based on work RVUs to half the amount allocated to non-facility PE RVUs. The effect of this policy is to increase MPFS reimbursement to office-based providers for the first time in several years and is a critical step toward providing long-overdue reimbursement stability for independent and private practice providers that deliver high-quality care to Medicare beneficiaries outside of hospital settings.

Notably, the MPFS IPE policy finalized in the 2026 PFS Final Rule has drawn support from a broad range of primary care and consumer advocates as well, reflecting a growing consensus around the need for more equitable, site-neutral Medicare payment policies.

The Primary Care Collaborative (PCC), whose members include AARP, has endorsed reducing the portion of facility practice expense relative value units (PE RVUs) allocated based on work RVUs to half the amount allocated to non-facility PE RVUs beginning in calendar year 2026. PCC has emphasized that this approach would help correct long-standing payment imbalances and better support care delivered in community-based settings.

Consumer advocates have similarly voiced strong support. Consumers First—a coalition that includes Families USA and other national consumer organizations—has urged CMS to halve the number of PE RVUs for facility-based physician services, citing the importance of controlling costs, promoting site-neutrality, and protecting beneficiary access to affordable care.

OBFA appreciates CMS’ consideration of stakeholder input and urges CMS and Congress to continue to build on these foundational changes by enacting legislation to focus the MPFS on paying for the work of physicians and allied professionals and reimbursing separately for office-based practice expense.

To review the Primary Care Collaborative comment letter, click here: https://www.regulations.gov/comment/CMS-2025-0304-8887

To review the Consumers First comment letter, click here: https://www.regulations.gov/comment/CMS-2025-0304-13250

To review the Office-Based Facility Association comment letter, click here: https://www.regulations.gov/comment/CMS-2025-0304-7434

About the Office-Based Facility Association

The Office-Based Facility Association represents national physician and provider organizations committed to preserving access to high-quality, office-based care through fair and sustainable Medicare payment policies.