2026 Medicare Conversion Factor: $33.4009
The 2026 Medicare Physician Fee Schedule conversion factor is $33.4009. It is the single national dollar multiplier that converts a code's relative value units into the Medicare allowed amount. Every wRVU figure on RVUDoc is converted to dollars using this number at the National locality.
The payment formula
Payment = [ (Work RVU × Work GPCI) + (PE RVU × PE GPCI) + (MP RVU × MP GPCI) ] × 33.4009The three GPCIs (geographic practice cost indices) adjust for regional cost differences. At the National locality all three equal 1.000, so payment simplifies to total RVU × the conversion factor.
Worked example: 99214
99214 (established office visit, moderate complexity) has a 2026 work RVU of 1.92, a practice-expense RVU near 1.73, and a malpractice RVU near 0.14, for a total around 3.79 RVU. At the National locality:
3.79 × $33.4009 ≈ $126.59 Medicare allowedThe exact RVUs and resulting payment for any code are on its code page, and you can model a full annual code mix in the calculator.
Conversion factor, 2021 to 2026
| Year | Conversion factor | Note |
|---|---|---|
| 2021 | $34.8931 | Post-Consolidated Appropriations Act adjustment |
| 2022 | $34.6062 | Sequestration partially reinstated mid-year |
| 2023 | $33.8872 | 4.5% statutory cut partially offset by Congress |
| 2024 | $32.7442 | 3.4% reduction from 2023 |
| 2025 | $32.3465 | Further 2.8% reduction |
| 2026 | $33.4009 | Increase from 2025; current value |
Historical values reflect the final rule after any mid-year congressional adjustments. Reverify against the CMS final rule each January.
Frequently asked questions
What is the 2026 Medicare conversion factor?
The 2026 Medicare Physician Fee Schedule conversion factor is $33.4009. It is the dollar multiplier applied to the total relative value units (RVUs) of a CPT or HCPCS code to produce the Medicare allowed amount.
How is Medicare payment calculated from the conversion factor?
Payment = [(Work RVU x Work GPCI) + (Practice Expense RVU x PE GPCI) + (Malpractice RVU x MP GPCI)] x Conversion Factor. The GPCIs are geographic adjustment indices; at the National locality all three GPCIs equal 1.000.
Why does the conversion factor change every year?
The CF is set by a statutory formula plus annual congressional adjustments. Budget neutrality requirements, the Medicare Economic Index, and periodic legislative interventions all move it. It has trended down over 2022 to 2025 before the 2026 increase.
Does the conversion factor differ by specialty or locality?
No. The conversion factor is a single national number. Geographic variation comes from the GPCIs, and specialty variation comes from the RVUs assigned to the codes a specialty bills, not from the CF.
The calculator applies $33.4009 automatically across your full code mix.
Educational reference, not billing or legal advice. Verify against the CMS final rule and your payer contracts.