CMS releases several FY 2027 proposed rules

CMS kicked off the month of April by releasing a slew of proposed rules, spelling out its plans to update Medicare reimbursement and policies for a variety of facilities in fiscal year (FY) 2027.

CMS is proposing to update the hospice payment rate by 2.4% in FY 2027, which would equate to a payment increase of roughly $785 million compared to FY 2026. Hospice payments are subject to a statutory aggregate cap that limits the overall payments made to a hospice facility per year. For FY 2027, CMS is proposing to increase this amount to $36,210.11.

In the FY 2027 Skilled Nursing Facility (SNF) Prospective Payment System (PPS) proposed rule, CMS is calling to update payment rates by 2.4%. Along with proposals related to the SNF Quality Reporting Program and Value-Based Purchasing Program, the rule also includes requests for information on advanced care planning and the Patient-Driven Payment Model payment system.

The FY 2027 Inpatient Psychiatric Facility (IPF) PPS proposed rule includes a 2.3% payment rate increase. The agency is also proposing to cap IPF PPS outlier payments at the provider level to minimize the impact of certain high-cost facilities on the outlier pool.

Lastly, CMS is proposing to increase payments to inpatient rehabilitation facilities (IRF) by 2.4% in FY 2027, as well as update the outlier threshold to maintain outlier payments at 3.0% of total payments. CMS projects that these proposals would increase total IRF payments by approximately $355 million in FY 2027.

Comments are due by June 1 for all four of these proposed rules.