CMS finalizes 3.2% payment update for SNFs

The Centers for Medicare & Medicaid Services today issued a final rule for the skilled nursing facility prospective payment system for fiscal year 2026. The rule will increase aggregate payments by 3.2%, which reflects a 3.3% market basket update, a 0.7 percentage point cut for productivity, and an increase of 0.6 percentage points for the market basket forecast error for FY 2024.

For the SNF Quality Reporting Program, CMS will remove four patient assessment data elements related to social drivers of health. The agency also finalized its proposal to remove the previously adopted health equity score adjustment in the SNF value-based purchasing program.

The payment updates (https://www.cms.gov/newsroom/fact-sheets/fy-2026-skilled-nursing-facility-snf-prospective-payment-system-final-rule-cms-1827-f) are effective Oct. 1, 2025. AHA members will receive a Regulatory Advisory with additional information.