Federal Policy
CMS Issues FY 2027 Hospice Payment Rate Update and Quality Reporting Requirements
CMS released the final rule updating hospice wage index values and payment rates for FY 2027 (October 1, 2026 through September 30, 2027). The rule implements a market basket update and wage index changes affecting hospice reimbursement rates. It also finalizes modifications to the Hospice Quality Reporting Program, including quality measure updates and reporting requirements that hospices must meet to avoid payment reductions. The updates take effect October 1, 2026.
Why it mattersMedicaid covers hospice services through a mandatory state plan benefit with payment rates often tied to Medicare levels, meaning rate changes and quality reporting requirements established in this rule may affect Medicaid hospice reimbursement and provider compliance obligations in states that benchmark to Medicare rates.