Federal Policy
CMS Finalizes 2.4% SNF Payment Increase for FY 2027, Expands Quality Reporting
CMS issued a final rule July 29 updating the skilled nursing facility prospective payment system for fiscal year 2027, increasing aggregate payments by 2.4% (3.3% market basket minus 0.9% productivity adjustment). The rule also revises the SNF Quality Reporting Program by removing two COVID-19 vaccination measures, shortening data reporting timelines, and requiring facilities to submit assessment data for all patients regardless of payer source. Changes take effect October 1, 2026. The all-payer reporting requirement expands data submission obligations beyond Medicare to include Medicaid and other payers.
Why it mattersThe all-payer assessment requirement will affect state Medicaid agencies and managed care plans that rely on SNFs for post-acute and long-term care, as facilities must now report quality data on Medicaid beneficiaries alongside Medicare patients.