Does Medicare Cover the Annual Physical Exam?

Last updated November 3, 2026

*Providers guiding patients from annual physicals into Medicare-covered annual wellness visits and more comprehensive, ongoing care programs can find proven strategies in our guide "From Annual Wellness Visits to Ongoing Care Management: A Provider’s Playbook."*

Many people assume Medicare covers a yearly checkup the way employer insurance does, and they’re often surprised by a bill afterward. Medicare handles preventive care differently, through the “Welcome to Medicare” preventive visit (IPPE) and the Annual Wellness Visit (AWV). Neither is the same as a traditional physical.

That confusion leads to unexpected costs for patients and denials for practices. Below, we compare the three visits and explain how practices can set clear expectations before the appointment.

This can come as a surprise — and an expensive one at that — for patients who believe Medicare will provide the same annual physical exam coverage as many private payers. While Medicare does not cover annual physical exams, it does cover a single "initial preventive physical examination," or IPPE, followed by exams called "annual wellness visits," or AWVs.  

Confused? You're not alone. The differences between traditional physicals and how Medicare approaches annual exams have created headaches for providers and beneficiaries since the Medicare annual wellness visit debuted in 2011.  

In fact, a study conducted prior to the COVID-19 pandemic showed that about 51% of practices did not provide AWVs, while about 23% only provided AWVs to at least a quarter of eligible patients.   A contributing factor to such a low AWV rate has likely been beneficiary confusion about the differences between a Medicare annual wellness exam vs. an annual physical exam.  

For providers, this confusion can lead to unhappy patients, like Beverly Dunn, and challenges collecting balances from patients. It can also contribute to coding and billing errors that trigger denials and other issues that delay reimbursement payments.  

Before we get into why "no" is the answer to the question of, "Does Medicare pay for annual physical exams?" and what providers should do to address the confusion effectively, it's helpful to define annual physical exam, annual wellness visit, and initial preventive physical examination. 

What is an Annual Physical Exam? 

Let's begin by discussing the concept familiar to most people: annual physical. In defining the term, Dignity Health states, "A thorough physical examination covers head to toe and usually lasts about 30 minutes. It measures important vital signs — temperature, blood pressure, and heart rate — and evaluates your body using observation, palpitation, percussion, and auscultation." In addition, the performing physician may also conduct tests (e.g., drawing blood, or requesting a urine specimen). 

The Centers for Medicare & Medicaid Services (CMS) notes that a "routine physical examination" is not covered by Medicare. Thus, Medicare patients will be expected to cover the entire cost of the service (unless supplementary insurance provides coverage). 

What’s the difference between an annual physical and an annual wellness visit?

Now onto the annual wellness visit or AWV, which was established by the Affordable Care Act. As Medicare notes, beneficiaries with Medicare Part B for longer than a year are eligible for the service once every 12 months. During these visits, a provider develops or updates a personalized prevention plan to help reduce the likelihood of disease and disability. The visit should include a wide range of services, such as medical and family history review, developing/updating current providers and prescriptions, gathering of routine measurements, treatment options for risk factors, and development of a screening schedule. Providers also ask patients to complete a health risk assessment (HRA) and may perform a cognitive impairment assessment to look for signs of Alzheimer's disease or dementia. Note: A recent survey suggests that upwards of 85% of Medicare annual wellness visits may fail to meet compliance requirements set forth by CMS. Read about the survey and its results in this Physicians Practice column.  

Medicare patients pay nothing for the annual wellness visit. For help identifying eligible AWV patients, get this free guide.  

Despite some of the challenges associated with the Medicare AWV, it's a valuable service that benefits providers, patients, and our healthcare system. Learn more about why we describe the annual wellness visit as a "win-win for everyone involved" in this post. 

What is the the Welcome to Medicare visit or Initial Preventive Physical Examination (IPPE)?

Finally, let's review the components of an initial preventive physical examination, also referred to as an IPPE or "Welcome to Medicare" preventive visit. This is a service provided to newly enrolled Medicare beneficiaries once within the first 12 months they are covered by Medicare Part B. As Medicare notes, the visit includes a review of a patient's medical and social history concerning health and education and counseling about preventive services. Also included with this review: services such as health risk screenings, flu shots, and referrals for other care; routine measurements; body mass index calculation; vision test; evaluation of potential risk for depression; and a written plan outlining services needed. This visit is covered only once and only if it's performed within the 12 months of Part B enrollment. 

Annual Physical vs. Welcome to Medicare Visit vs. Annual Wellness Visit

Why doesn’t Medicare cover routine physicals?

Now that we've summarized the different services provided during these annual exams and visits, we can look at why Medicare only covers annual wellness visits and the single initial preventive physical examination but not annual physical exams.  

The reason becomes more apparent when we simplify the differences between an annual physical exam and an annual wellness visit. As the KHN article referenced earlier states, "An annual physical typically involves an exam by a doctor along with bloodwork or other tests. The annual wellness visit generally doesn't include a physical exam, except to check routine measurements such as height, weight and blood pressure." The UNC School of Medicine notes, "Medicare wellness visits … are designed to improve your overall health care by providing a more detailed look at your health risks based on family history and health behaviors and more." 

Think of the annual physical exam as more of a "hands-on" experience, whereas the annual wellness visit takes a "hands-off" approach to evaluation. It would seem that when the federal government was debating what to cover within traditional Medicare, the decision was to cover the broader look at a beneficiary's health. In discussing the annual wellness visits, AARP states, "The visit provides a snapshot of your current health as a baseline for future yearly visits, and is intended as a preventive service — a way of catching potentially serious health issues early." 

The decision to pay for annual Medicare wellness exams rather than an annual physical exam does not mean that annual physicals are unimportant. Rather, it would seem that the federal government believes annual wellness visits are more important to a Medicare beneficiary's long-term health. Medicare beneficiaries can still receive an annual physical from their primary care providers, but charges, as discussed earlier, will typically apply to this service. For those patients with a Medicare Advantage plan, an annual physical may be an included benefit. 

For providers: how to prevent annual physical billing confusion

As noted earlier, confusion between an annual wellness exam vs. an annual physical exam can create patient dissatisfaction and reimbursement headaches for providers. Here are five tips to help address these challenges. 

1.  Ensure patients understand the preventive service they will — and will not — receive.

If a Medicare patient requests the scheduling of an annual physical, staff should take the time to verify that this is what the patient desires. A discussion with the patient should cover matters such as a review of the differences between an annual wellness exam vs. annual physical exam vs. IPPE (if applicable), what the patient's insurance will and will not cover, and how much money the patient will need to pay out of pocket for the scheduled exam.  

By reviewing these distinctions before delivering the wellness service, you will reduce the likelihood of a negative patient experience due to a surprise medical bill. When patients are unsatisfied, collecting their portion of the bill often becomes more difficult, and they may vent their frustrations, which can negatively impact a provider's reputation and online ratings. 

For more help with preparing patients for their AWV, read this post. 

2.  Be transparent about additional services.

Whether you perform an annual wellness exam, annual physical exam, or IPPE, you may determine that it is worthwhile to provide treatments or additional preventative services not necessarily covered under these routine exams. Before proceeding with these treatments or services, explain to patients why you recommend them, and what they are likely to cost patients. Doing so will help avoid the problems previously noted. 

3.  Document, code, and bill correctly.

Once the service(s) is delivered, proper documentation is key. Providers should ensure they document the correct service that's being delivered, without any ambiguity. This will help ensure the service is coded correctly, which should then allow billers to bill the correct insurance(s) and collect the appropriate amount from patients.  

Education is critical to completing AWV coding, and billing steps consistently and appropriately. Staff should be trained on the differences between a Medicare annual wellness visit vs. annual physical exam vs. IPPE and why those differences matter from a coding, billing, and reimbursement perspective. Consider creating a cheat sheet to help remind staff of the differences when they are completing documentation. 

4.  Remind Medicare patients about their annual wellness exams.

Explore ways to remind your patients about their annual wellness exam benefit effectively. Considering how many Medicare patients are not taking advantage of this covered service, improving communication with patients may help give your practice a substantial volume boost. 

If you're looking for additional guidance on how to grow your AWV program, watch this on-demand webinar. 

5.  Invest in preventive services technology.

Investing in the right technology can help your practice reduce the time spent on preventive services, such as the annual wellness exam; grow patient volume, and increase reimbursements. One such technology is Prevounce. This customizable wellness platform improves AWV eligibility verification, patient outreach and intake, billing and coding, completion of documentation requirements, compliance, and much more. Schedule a demo today!