Medical Cost Trends (2015 - 2026)
Track how healthcare costs have changed over the past decade. Medicare conversion factors, Medical CPI, and year-over-year inflation rates from official CMS and BLS data.
Medicare Conversion Factor ($/RVU)
The Medicare Physician Fee Schedule conversion factor converts Relative Value Units (RVUs) into dollar amounts. It has been declining since 2020 before a 2026 recovery to $33.40.
Medical CPI Year-Over-Year Change (%)
The Medical Care Consumer Price Index from the Bureau of Labor Statistics. Medical inflation has consistently outpaced general inflation, with notable spikes in 2020 and 2022.
Medicare Conversion Factor YoY Change (%)
While medical costs rise with CPI, Medicare reimbursement to physicians has been cut year after year. The 2026 increase (+3.25%) is the first meaningful raise in over a decade.
Key Insights
Physicians received less per RVU even as their costs rose.
Healthcare inflation far outpaces general inflation (23%).
First significant increase in the conversion factor since 2020.
Still below the 2015 level of $35.80 despite a decade of inflation.
Data Sources
- Medicare Conversion Factor: CMS Physician Fee Schedule (CY 2015-2026 Final Rules)
- Medical CPI: Bureau of Labor Statistics, FRED Series CPIMEDSL (Medical Care CPI-U)
- Year-over-year changes computed from annual averages