Skilled nursing facilities in 2027 will get a 2.4% payment increase based on the final rule released by the Centers for Medicare & Medicaid Services on Wednesday. The amount is based on a final SNF market basket of 3.3%, reduced by a 0.9% productivity adjustment, for an estimated increase of $882.74 million in aggregate payments to the facilities.
CMS said the 2.4% increase is the same as the one proposed in April. It compares to a 3.2% finalized update for 2026 that CMS released in July 2025.
Payment Increase Details
The Skilled Nursing Facility Prospective Payment System for fiscal year 2027 rule also finalizes the removal of two Quality Report Program measures related to COVID-19 vaccination. The Covid-19 Vaccination Coverage Among Healthcare Personnel measure and the Covid-19 Vaccine: Percent of Patients/Residents Who Are Up to Date measure will be removed.
Also included is a new data submission timeline of 45 days beginning in FY2029. The current timeline is 4.5 months. This will reduce the lag between data submission and public reporting by up to three months, resulting in timelier data for consumers and their families, CMS said.
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Industry Reaction
LeadingAge, an organization that represents more than 5,300 nonprofit aging services, said the rate is short of the adequate payment needed. However, LeadingAge has long supported ending the COVID-19 reporting measures, according to Jodi Eyigor, vice president of Health Policy for the organization.
Given the current uncertain economic environment, and the increased costs in critical categories including food, energy and wages, the final rule’s modest 2.4% payment rate boost announced today is short of what is needed, Eyigor said. There are, however, several positives in the final rule, she said, referring to the end of the COVID-19 vaccination measures.
LeadingAge’s opposition to these measures is longstanding: both reflect personal choice and do not reflect or measure quality of nursing home care, Eyigor said. That’s even more true now, with the Centers for Disease Control and Prevention recommendations having changed to shared clinical decision-making. Measuring uptake just doesn’t make sense.
LeadingAge fully supports requiring submission of minimum data set (MDS) data on all skilled nursing facility residents admitted for skilled care regardless of payer because the outcome will be a more complete picture of provider performance and outcome, Eyigor said.
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Concerns Over Administrative Burden
Clif Porter, AHCA/NCAL president and CEO, said by statement in Skilled Nursing News: “We are concerned that expanding the SNF Quality Reporting Program to all residents regardless of payer source will drastically increase administrative burden without directly improving clinical care for patients.”
CMS said it received comments on one potential measure that might be adopted in future years: advanced care planning (ACP). ACP is a continuous process of conversation and documentation to align a patient’s care and interventions with their beliefs, values and preferences if they become unable to make those decisions, CMS said.
CMS is finalizing a requirement for all SNFs to submit Minimum Data Set data for all SNF residents receiving covered skilled care, regardless of payer. This will align reporting with other post-acute care settings, said CMS, adding that programs already collect data on all patients regardless of payer. SNFs will also have earlier access to data to support their quality initiatives, the agency said.
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