April 03, 2026

FY2027 Skilled Nursing Facility Payment System Update

April 03, 2026

CMS Proposes 2.4% FY27 SNF Payment Update, Removal of COVID Vaccination Measures

The Centers for Medicare & Medicaid Services (CMS) released the Fiscal Year 2027 (FY 27) Skilled Nursing Facility (SNF) Prospective Payment System (PPS) proposed rule late on April 2, 2026. The rule proposes a 2.4% payment update for SNFs in FY 27 based on a 3.2% market basket update, less a 0.8% productivity adjustment. Additionally, in a win for LeadingAge, CMS proposes to remove two measures from the SNF Quality Reporting Program (QRP): COVID-19 Vaccination Coverage Among Healthcare Personnel and COVID-19 Vaccine: Percent of Patients/Residents Who Are Up to Date. LeadingAge has consistently advocated for removal of these measures since their introduction. Details here.