|
FOR IMMEDIATE RELEASE
July 29, 2026
Contact: CMS Media Relations
(202) 690-6145 | CMS Media Inquiries
Fiscal Year 2027 Skilled Nursing Facility Prospective Payment System Final Rule (CMS 1843-F)
On July 29, 2026, the Centers for Medicare & Medicaid Services (CMS) issued a final rule for updates to Medicare payment policies and rates for skilled nursing facilities under the Skilled Nursing Facility (SNF) Prospective Payment System (PPS) for fiscal year (FY) 2027. CMS is publishing this final rule consistent with the legal requirements to update Medicare payment policies for SNFs annually. This fact sheet discusses the final rule’s provisions.
FY 2027 Final Updates to the SNF Payment Rates
For FY 2027, CMS finalized updating SNF PPS rates by 2.4% based on the final SNF market basket of 3.3%, reduced by a 0.9% productivity adjustment, for an estimated increase of $882.74 million in aggregate payments to SNFs.
FY 2027 Final Updates to the SNF Quality Reporting Program
Measure Removal. CMS is finalizing the removal of two measures from the SNF Quality Reporting Program (QRP), beginning with the FY 2028 SNF QRP: (1) the COVID-19 Vaccination Coverage Among Healthcare Personnel measure, and (2) the COVID-19 Vaccine: Percent of Patients/Residents Who Are Up to Date measure.
Data Submission Deadline. CMS is finalizing the revised data submission timeframe from 4.5 months to approximately 45 days, beginning with the FY 2029 SNF QRP. This shortened timeframe will reduce the lag between data submission and public reporting by up to three months, resulting in timelier data for consumers and their families. SNFs will also have earlier access to data to support their quality initiatives.
Minimum Data Set (MDS) Data Submission. To obtain the most accurate SNF quality of care information and to remain relevant to the SNF community and consumers, CMS is finalizing a requirement for all SNFs to submit MDS data for all SNF residents receiving covered skilled care, regardless of payer. This will align the SNF QRP with other Post-Acute Care settings and CMS programs that already collect data on all patients regardless of payer.
FY 2027 SNF QRP Request for Information
CMS received comments on one potential measure topic that might be adopted in future years for the SNF QRP: advanced care planning (ACP). ACP is a continuous process of conversation and documentation to align a patient’s care and interventions with their beliefs, values, and preferences if they become unable to make those decisions. CMS provides a summary of comments received in the FY 2027 SNF PPS final rule.
FY 2027 Final Updates to the SNF Value-Based Purchasing Program
For the SNF Value-Based Purchasing (VBP) Program, CMS finalized performance standards for the FY 2029 and FY 2030 program years to comply with the program’s statutory notice deadline. CMS will update the “snapshot date” codified at 42 CFR § 413.338(f)(1)(v) for two measures calculated using MDS assessment data to maintain alignment with the newly finalized SNF QRP submission deadlines for MDS assessment data, beginning with FY 2027 data. The SNF VBP adjustments for certain SNFs subject to the net reduction in payments under the SNF VBP and which are not incorporated into the impact estimates for the payment rate are an estimated $203.60 million reduction in FY 2027.
Request for Information on Updating the Patient Driven Payment Model Payment System to Address Case-Mix Upcoding
This Request for Information (RFI) focused on potential updates to the Patient Driven Payment Model payment system as part of a broader effort to ensure that payment policy reflects current care practices and changes in the SNF resident population. The RFI also focused on how CMS could address observed case-mix upcoding. CMS will take the comments received under advisement in any potential proposed adjustments in future rulemaking.
The SNF Prospective Payment System Final Rule can be viewed on the Federal Register at: https://www.federalregister.gov/d/2026-15562
###
Get CMS news at cms.gov/newsroom, sign up for CMS news via email and follow
CMS on X @CMSgov
|
