MLN Connects Newsletter for June 25, 2026

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Date
2026-06-25
Title
In This Edition: ESRD Proposed Payment Rule | Facility Reports | Part B Drug Pricing
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Proposed Payment Rule

News

Compliance

Claims, Pricers & Codes

MLN Matters® Articles

Publications & Multimedia

 

Proposed Payment Rule

CY 2027 End-Stage Renal Disease Prospective Payment System Proposed Rule

CMS issued a proposed rule to update payment rates and policies under the Medicare End-Stage Renal Disease (ESRD) Prospective Payment System (PPS) for renal dialysis services furnished to Medicare beneficiaries on or after January 1, 2027. This rule also proposes updates to the acute kidney injury dialysis payment rate for renal dialysis services furnished by ESRD facilities for CY 2027 and proposes to update requirements for the ESRD Quality Incentive Program.

For CY 2027, CMS is proposing to increase the ESRD PPS base rate to $299.55, which CMS expects will increase total payments to all ESRD facilities, both freestanding and hospital-based, by approximately 1.1%. This amount includes a proposed $15.96 increase to account for the incorporation of phosphate binders into the ESRD PPS base rate. The CY 2027 ESRD PPS proposed rule also proposes changes to the low-volume payment adjustment, changes to the payment adjustments for pediatric patients, an increase to the home and self-dialysis training add-on amount and technical modifications to the transitional drug add-on payment adjustment (TDAPA), and a post-TDAPA add-on payment adjustment.

More Information:

 

News

All Medicare Facility Types: Get Ready for the PEPPER Relaunch 

The Program for Evaluating Payment Patterns Electronic Report (PEPPER) is relaunching in the coming months for all Medicare facility types, including hospitals, post-acute care providers, and specialty facilities.

PEPPER is a free tool that helps you review your Medicare billing data so you can identify issues before problems arise and support accurate claims. Use it to:

  • Spot billing patterns that may need review or improvement
  • Identify areas that may need closer monitoring or internal audits
  • Find services that may be under‑coded or over‑coded
  • Track trends like longer patient stays

How to Get Your PEPPER 

Authorized officials (AOs), access managers (AMs), and staff end users (SEUs) can access the reports through the PEPPER Portal

How to become an SEU:

  • Sign in to the CMS Identity & Access (I&A) System using your existing NPPES or PECOS credentials.
  • Request the PEPPER business function for your organization. The Comparative Billing Report business function is also available and can be requested at the same time.
  • Your AO or AM must approve your request.

More Information:

 

Clinical Diagnostic Laboratories: Report Your Data Through July 31

Are you an independent laboratory, physician office laboratory, or hospital outreach laboratory that meets the definition of an applicable laboratory under the Clinical Laboratory Fee Schedule (CLFS)? If so, you must report your data by July 31, 2026, based on an updated data collection period of January 1 – June 30, 2025, including:

  • Applicable HCPCS codes
  • Associated private payor rates
  • Volume data

How do I report?

  1. Review CLFS Data Collection System resources:
  2. View the applicable HCPCS codes (ZIP)
  3. Use the Data Reporting Template (ZIP); see training video 

More Information:

 

Understanding Telehealth Enrollment Guide

Not sure how to enroll for telehealth services? Our Understanding Telehealth Enrollment (PDF) guide breaks down everything you need to know to enroll correctly.

 

Compliance

Intermittent Urinary Catheters: Medicare Improperly Paid Suppliers

In a report, the Office of Inspector General found that Medicare improperly paid for catheters and kits. To avoid improper payments, review the Urological Supplies provider compliance tip for more information, including:

  • Billing codes
  • Denial reasons and how to prevent them
  • Refill and documentation requirements
  • Resources 

 

Tracheostomy Supplies: Prevent Claim Denials

In 2024, the improper payment rate for tracheostomy supplies was 25.6%, with a projected improper payment amount of $6.5M. Learn how to bill correctly for these services. Review the Tracheostomy Supplies provider compliance tip for more information, including:

  • Billing codes
  • Denial reasons and how to prevent them
  • Refill and documentation requirements

 

Claims, Pricers & Codes

Medicare Part B Drug Pricing Files & Revisions: July Update 

Learn about quarterly updates to the following average sales price and not otherwise classified pricing files: 

  • July 2026
  • April 2026
  • January 2026 
  • October 2025
  • July 2025

See the instruction to your Medicare Administrative Contractor (PDF)

 

MLN Matters® Articles

Hospital Outpatient Prospective Payment System: July 2026 Update

Learn about updates (PDF), effective July 1, 2026: 

  • New COVID-19 monoclonal antibody products and administration codes 
  • CPT proprietary laboratory analyses coding changes 
  • New and reassigned Category III CPT codes 
  • Device pass-through and device offset information 
  • Ambulatory payment classification assignment and status indicator changes 
  • Drugs, biologicals, and radiopharmaceuticals 
  • Non-opioid treatments for pain relief 
  • Skin substitute products

 

Publications & Multimedia

Skilled Nursing Facility 3-day Rule Billing Fact Sheet – Revised 

We included information (PDF) on the Transforming Episode Accountability Model Skilled Nursing Facility 3-Day Rule Waiver.

 


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