Thursday, April 16, 2026

   

CMS Releases Proposed Medicare 2027 Inpatient Payment Rule

CMS logoOn April 10, the Centers for Medicare & Medicaid Services (CMS) introduced its 2026 proposed inpatient prospective payment system (IPPS) rule. WHA will analyze the full rule in the coming weeks and prepare comments in advance of the June 9 comment deadline.

Among the notable items included in the proposal are:

  • A 2.4% net pay bump that includes a 3.2% market-basket increase, offset by a 0.8% productivity cut.
  • Expanding the Comprehensive Care for Joint Replacement (CJR) model to all eligible hospitals nationwide.
  • Decreasing Medicare DSH payments by approximately $546 million based on updates to the estimated uncompensated care pool.
  • Changes to provider-based regulations for how CMS treats the "same patient population."
  • The creation of 14 new and deletion of 18 current MS-DRGs.
  • Changes to various inpatient quality reporting and value-based programs.
  • Changes to the CMMI Transforming Episode Accountability Model (TEAM).

Contact WHA Vice President of Federal Affairs and Advocacy Jon Hoelter with questions.


Vol. 70, Issue 15
Thursday, April 16, 2026

CMS Releases Proposed Medicare 2027 Inpatient Payment Rule

CMS logoOn April 10, the Centers for Medicare & Medicaid Services (CMS) introduced its 2026 proposed inpatient prospective payment system (IPPS) rule. WHA will analyze the full rule in the coming weeks and prepare comments in advance of the June 9 comment deadline.

Among the notable items included in the proposal are:

  • A 2.4% net pay bump that includes a 3.2% market-basket increase, offset by a 0.8% productivity cut.
  • Expanding the Comprehensive Care for Joint Replacement (CJR) model to all eligible hospitals nationwide.
  • Decreasing Medicare DSH payments by approximately $546 million based on updates to the estimated uncompensated care pool.
  • Changes to provider-based regulations for how CMS treats the "same patient population."
  • The creation of 14 new and deletion of 18 current MS-DRGs.
  • Changes to various inpatient quality reporting and value-based programs.
  • Changes to the CMMI Transforming Episode Accountability Model (TEAM).

Contact WHA Vice President of Federal Affairs and Advocacy Jon Hoelter with questions.