Policy | United States |
CMS finalizes 2.3% hospice payment update for FY 2027
The final rule also raises the aggregate cap and introduces a new spending variation index that providers have sharply criticized.
The Centers for Medicare & Medicaid Services issued its FY 2027 hospice final rule (CMS-1851-F) on July 30, 2026. Payments rise by 2.3%, an estimated $755 million in aggregate, slightly below the 2.4% CMS had proposed in April.
The hospice cap for the FY 2027 cap year is set at $36,174.75. The rule took effect on October 1, 2026.
CMS also finalized a hospice service and spending variation index (SSVI), built from nine claims-based measures, to identify providers that may need targeted education and oversight. Industry groups including the National Alliance for Care at Home and LeadingAge said the update falls short of rising costs.