CMS finalizes 2.4% payment update for SNFs

The Centers for Medicare & Medicaid Services July 29 issued a final rule for the skilled nursing facility prospective payment system for fiscal year 2027. The rule will increase aggregate payments by 2.4%, which reflects a 3.3% market basket update and a 0.9 percentage point cut for productivity. CMS also finalized its proposals related to the SNF Quality Reporting Program, including the removal of two measures related to COVID-19 vaccination, a shortened data reporting timeline, and the requirement to submit assessment data for all patients regardless of payer.

These updates become effective Oct. 1, 2026. AHA members will receive a Regulatory Advisory with additional information.

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