CMS Announces 2.4% Medicare Payment Rise for Skilled Nursing Facilities

The Centers for Medicare & Medicaid Services (CMS) issued a final rule for fiscal year 2027 governing the Skilled Nursing Facility (SNF) Prospective Payment System. The rule raises Medicare reimbursement rates by 2.4%, an estimated $882.74 million increase nationwide, reflecting a 3.3% market‑basket adjustment offset by a 0.9% productivity reduction.

In addition to the payment change, CMS updated the SNF Quality Reporting Program. Two COVID‑19 vaccination quality measures are being removed, and the data‑submission deadline will be shortened to roughly 45 days beginning FY 2029. The rule also requires facilities to submit assessment data for all patients, regardless of payer, expanding the scope of quality reporting.

These changes are expected to affect the revenue cycle, documentation practices, and compliance efforts of skilled nursing facilities across the United States.