JEFFERSON CITY, Mo.,
03
April
2026
|
18:25 PM
Europe/Amsterdam

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

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Staff Contact: Andrew Wheeler

The Centers for Medicare & Medicaid Services released the 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. Comments about the rules are due Monday, June 1. The following is a summary of the proposals.

IRF PPS

  • Market basket increase of 2.4% (3.2% less 0.8% productivity adjustment)
  • CMS estimates a net IRF payment increase of $355 million
  • IRF quality reporting program updates
  • Requests for information about potential enhancements to the IRF PPS, including how primary diagnoses and comorbidities are used to classify patients by case-mix
  • Proposed changes to the Durable Medical Equipment, Prosthetics, Orthotics and Supplies Competitive Bidding Program

IPF PPS

  • Market basket increase of 2.3% (3.1% less 0.8% productivity adjustment)
  • CMS estimates a net IPF payment increase of $50 million
  • IPF quality reporting program updates

SNF PPS

  • Market basket increase of 2.4% (3.2% less 0.8% productivity adjustment)
  • CMS estimates a net SNF payment increase of $208.4 million
  • SNF quality reporting program updates
  • Updated SNF value-based purchasing program performance standards
  • Updates to the Patient Driven Payment Model payment system to address case-mix upcoding requests for information

Hospice

  • Market basket increase of 2.4% (3.2% less 0.8% productivity adjustment)
  • CMS estimates a net IPF payment increase of $785 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
  • Proposing to make the 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.

About Missouri Hospital Association

The Missouri Hospital Association is a nonprofit association in Jefferson City that represents 136 Missouri hospitals. In addition to representation and advocacy on behalf of its membership, the association offers continuing education programs on current health care topics and seeks to educate the public about health care issues.