CMS Releases FY 2027 Skilled Nursing Facility PPS Final Rule

CMS Releases FY 2027 Skilled Nursing Facility PPS Final Rule

CMS has released the FY 2027 Skilled Nursing Facility (SNF) Prospective Payment System (PPS) Final Rule, which becomes effective October 1, 2026. Although the official rule is scheduled for publication in the Federal Register on July 31, 2026, an advance version has been made available for review.

Highlights of the Final Rule

Medicare Payment Update

1. CMS finalized a 2.4% net increase in Medicare payments to skilled nursing facilities for FY 2027.
2. This represents an estimated $882.7 million increase in overall Medicare SNF reimbursement nationwide.

Skilled Nursing Facility Quality Reporting Program (SNF QRP)

CMS finalized several changes to the Quality Reporting Program, most of which will take effect over the next several years:

1. FY 2028: Two COVID-19 vaccination quality measures will be removed.
2. FY 2029: Quality Reporting Program submission deadlines will move earlier. MDS assessments must be submitted by the 15th day of the second month following the end of each quarter.
3. FY 2031: MDS submission requirements will expand to include all residents receiving covered skilled nursing care, regardless of payer source.

Skilled Nursing Facility Value-Based Purchasing (SNF VBP)

CMS also:

1. Finalized performance standards for the FY 2029 and FY 2030 Value-Based Purchasing program years.
2. Updated MDS review timelines to align with the revised Quality Reporting Program submission schedule.

What This Means for Providers

The FY 2027 Final Rule contains few immediate operational changes. While Medicare reimbursement will increase modestly, the more significant changes are scheduled for future years and primarily affect quality reporting and MDS submission requirements.

Organizations should continue to focus on:

1. Accurate MDS coding and documentation
2. Timely assessment completion and submission
3. Monitoring upcoming QRP deadline changes
4. Preparing for future all-payer MDS reporting requirements
5. Maintaining strong documentation practices to support quality reporting and reimbursement