Glossary · Updated Jul 6, 2026
Conversion Factor
The conversion factor is the dollar amount Medicare multiplies by total geographically-adjusted RVUs to produce a payment, updated at least annually. Starting with CY2026, it is no longer a single national figure — CMS publishes a higher rate for qualifying-APM-participant (QP) clinicians and a lower rate for everyone else (non-QP), applied to the same RVUs.
Current conversion factor — Q3 2026 release
- Standard (non-QP)
- $33.4009
- Qualifying APM participant (QP)
- $33.5675
From the Q3 2026 PFS release as published by CMS — dollars per total geographically-adjusted RVU.
Where it sits in the math
After each RVU component is multiplied by its GPCI and the three terms are summed, that total is multiplied by the conversion factor to yield the payment amount. Because it is a single multiplier applied to every code, a change to the conversion factor shifts every payable rate proportionally.
Why it changes
The conversion factor is updated through the annual rulemaking process and can be affected by statutory formulas and adjustments. A small change to the conversion factor moves the entire fee schedule, which is why year-over-year rate comparisons often trace back to it rather than to any change in a code’s RVUs.
CY2026: two conversion factors, not one
CY2026 replaced the old Advanced APM participation bonus with a structural split: a higher conversion factor for QP clinicians, a lower one for non-QP clinicians, both applied to identical RVUs. See the 2026 conversion factor guide for what that means for a specific rate.
Frequently asked
Is there one conversion factor or many?
Through CY2025 there was a single national Physician Fee Schedule conversion factor for most services. Starting CY2026, there are two — a qualifying-APM-participant (QP) rate and a non-QP rate — both national, with geographic variation still coming from the GPCIs, not the conversion factor itself.
Why did a rate change even though the RVUs did not?
Most likely the conversion factor changed between releases, or (from CY2026 on) the QP vs. non-QP conversion factor was applied. Because it multiplies every code, a change to it moves rates across the board.
Related
Sources
Written from primary CMS sources — see how we source, compute, and verify everything on this site.