CMS finalizes 2.8% SNF payment increase for FY 2027, adds quality measures

CMS published the final FY 2027 rule for Skilled Nursing Facilities. It includes a net 2.8% increase in Medicare payments, about $910 million. The update blends a 3.1% market basket increase with a 0.3% productivity adjustment. The rule also finalizes two new quality measures for the SNF Quality Reporting Program: a claims-based measure for successful discharge to the community and a measure for functional improvement. Payments under the Patient-Driven Payment Model are not structurally changed. Facilities should review the finalized wage index tables for their region, as geographic reclassifications can affect the final rate. The changes are effective October 1, 2026.