When the Centers for Medicare & Medicaid Services (CMS) released the CY 2027 Medicare Physician Fee Schedule (MPFS) Proposed Rule this July, the reaction across the physician community was immediate — and deeply concerned.
For the American Association of Physicians of Indian Origin (AAPI), the nation’s largest ethnic medical organization, “the proposal represents more than a technical payment adjustment. It is a turning point that could reshape how physicians deliver care and how patients access it,” a press release from AAPI said.
AAPI is urging CMS to withdraw the policy and pursue targeted, evidence‑based alternatives. The AMA has issued the same call. Both organizations stress that payment reform must be grounded in data, not assumptions.
CMS proposes paying physicians 50% less for any same‑day service performed alongside an office or outpatient evaluation and management (E/M) visit. Whether it is a biopsy, a joint injection, a lesion removal, or a minor procedure with a 0‑, 10‑, or 90‑day global period, the rule would pay 100% for the highest‑valued service and half for everything else — regardless of specialty, clinical context, or medical necessity, AAPI noted, calling it a “sweeping change.”
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AAPI President Dr. Meher Medavaram calls the proposal “a fundamental misunderstanding of how care is delivered in real clinical settings.” She adds, “A 50% across‑the‑board cut is not a correction — it is a presumption of duplication applied to every physician, in every specialty, without evidence.”
CMS argues that same‑day care creates “efficiencies” that may duplicate work. But AAPI and the AMA point out that the existing RUC valuation process already accounts for overlapping tasks between E/M visits and procedures. The proposed rule, they argue, is not a refinement — “it is a blunt instrument,” the professional organizations say.
Sending out a call to AAPI members to oppose this new rule, the organization said, “CMS has not produced data showing widespread duplication of work across specialties. Instead, the proposal assumes duplication and applies a universal cut.”
Dr. Medavaram said, “This proposal does not create efficiency. It creates exit — physicians reducing services, limiting Medicare panels, or closing practices.”
In its own examples, CMS shows reimbursement falling beneath direct practice expenses. “For small and solo practices — many of which are run by AAPI physicians — this is not a theoretical concern. It is a financial breaking point,” AAPI believes.
The timing compounds the impact, it argues. “The temporary annual 2.5% Congressional increase expires at the end of 2026, meaning physicians already face declining reimbursement before this new cut is applied. Rising staffing costs, supply shortages, and technology investments only intensify the pressure.”
Specialties that rely on same-day care will be hit hardest, AAPI points out. Dermatology, otolaryngology, podiatry, colorectal surgery, and hand surgery are among the specialties where evaluating and treating a problem in one visit is standard, it notes.
“For these physicians, same‑day care is not an efficiency — it is the model of care itself.,” AAPI says, adding, “The proposed rule would force many to split visits unnecessarily. For patients, especially those in rural counties, this means: two trips; two copays; and, two delays.” In addition, it says, for some, that second visit is the point at which care stops.
“Physicians should not be penalized for doing in one visit what would otherwise take two,” Dr. Medavaram said.
AAPI physicians serve communities where access is fragile, the Indian American organization points out.Dr. Vijaya Maurya, Chair of AAPI Board of Trusted said, “AAPI members practice in solo offices, academic centers, and rural regions where they may be the only specialist within an hour’s drive. In these communities, same‑day care is not a convenience — it is a lifeline.”
“Our members practice in every specialty and nearly every state — in academic centers, in solo offices, and in rural communities where we are often the only specialist within an hour’s drive,” Dr. Krishan Kumar, President-Elect of AAPI, notes. “Fair physician payment is not a physician issue. It is a patient access issue.”
AAPI is mobilizing physicians nationwide to submit individualized comments before September 14, 2026, describing real same‑day care scenarios, financial impacts, and consequences for patient access. AAPI also urged its members to contact their Representatives and senators to express their concerns regarding CY 2027 Medicare Physician Fee Schedule.
Describing the CY 2027 MPFS proposal “a defining moment for physician advocacy” AAPI said it stqnd firmly with its physicians and patients.
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For more details, visit: www.aapiusa.org