R13850CP

MLN Connects^® Newsletter Message

Skilled Nursing Facility Prospective Payment System: FY 2027 Pricer Update

CMS published payment rates effective October 1, 2026, in the FY 2027 Skilled Nursing Facility (SNF) Prospective Payment System final rule.

Effective FY 2023, CMS applies a permanent 5% cap on any decrease to a provider’s wage index from its wage index in the prior year. This cap doesn’t apply to new SNFs for their first full or partial FY because they don’t have a wage index in the prior FY.

More Information:

• Medicare Claims Processing Manual, Chapter 6 (PDF), section 30.5
• Instruction to your Medicare Administrative Contractor (PDF)