CMS Releases Final Hospice, IRF, IPF And SNF Payment And Policy Updates For FFY 2027

The Centers for Medicare & Medicaid Services released the final federal fiscal year 2027 Medicare payment and policy updates for the Inpatient Rehabilitation Facility, Inpatient Psychiatric Facility, Skilled Nursing Facility and Hospice Prospective Payment Systems. The following is a summary of the updates.

IRF PPS

• Market basket increase of 2.3% (3.2% less 0.9% productivity adjustment)
• CMS estimates a net IRF payment increase of $340 million
• IRF quality reporting program updates
• Changes to Durable Medical Equipment, Prosthetics, Orthotics and Supplies Competitive Bidding Program

IPF PPS

• Market basket increase of 2.3% (3.2% less 0.9% productivity adjustment)
• CMS estimates a net IPF payment increase of $60 million
• IPF quality reporting program updates

SNF PPS

• Market basket increase of 2.4% (3.3% less 0.9% productivity adjustment)
• CMS estimates a net SNF payment increase of $882.74 million
• CMS estimates reductions in payments due to the SNF value-based purchasing programs will be $203.6 million
• SNF quality reporting program updates
• Updated SNF value-based purchasing program performance standards

Hospice

• Market basket increase of 2.3% (3.2% less 0.9% productivity adjustment)
• CMS estimates a net IPF payment increase of $755 million
• Due to fraud, waste and abuse within the hospice programs, CMS developed the service and spending variation index to identify inappropriate utilization, quality of care or compliance concerns
• Hospice Election Statement Addendum mandatory for all hospice elections and not just upon request
• Updates to the Hospice Quality Reporting Program

The Missouri Hospital Association published issue briefs with additional details.