FY2027 SNF PPS Final Rule Released

The FY2027 SNF PPS Final Rule was released on July 29, 2026.

Virtually all items mentioned in the Proposed Rule back in April were finalized in this Rule.

Below is a summary of key items:

A. PDPM Rates

• For FY2027, CMS is increasing SNF PPS rates by 2.4% as originally proposed.  
• CMS estimates that the overall impact is an estimated increase of $882 million in aggregate payments to SNFs. Each SNF, however, will be affected differently based on their specific wage index.

B. ICD-10 Codes:

• CMS did not make any substantive changes to the Clinical Category mapping of PT/OT, SLP comorbidities, or NTA.

C. Quality Reporting Program (QRP)

• CMS finalized the removal of the 2 COVID related QRP Measures for QRP Reporting:

1. Percent of Residents who are Up to Date with their COVID Vaccination (submitted through MDS item O0350). This may be stopped with new admissions as of Oct 1, 2026.
2. COVID-19 Vaccination Coverage Among Healthcare Personnel (submitted through NHSN). This may be stopped for calendar year 2026.

• Beginning with calendar year 2027, (Jan 1, 2027), CMS is revising the QRP submission/correction deadline from 4.5 months to 45 days after the end of the quarter. This means that SNFs must be more vigilant about MDS timeliness and accuracy and make corrections as soon as possible. The new deadlines are as follows: