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CMS Issues Final FY 2026 Medicare SNF PPS Payment Rule: Calls for 2.8% Increase

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  • CMS Issues Final FY 2026 Medicare SNF PPS Payment Rule: Calls for 2.8% Increase
August 1, 2025
CMS - updated logo 2024

On July 31, 2025, the Centers for Medicare & Medicaid Services (CMS) adopted the final rule to update Medicare payment policies and rates for skilled nursing facilities under the Skilled Nursing Facility Prospective Payment System (SNF PPS) for fiscal year (FY) 2026. CMS is updating SNF PPS by 3.2% based on the final SNF market basket of 3.2%, plus a 0.6% market basket forecast error adjustment, and a negative 0.7% productivity adjustment. This is a slight increase in the final net update as compared to the proposed rule, which was 2.8%.

Additional information on the final rule can be found here:

  • CMS Federal FY2026 SNF PPS Final Rule Fact Sheet
  • The Skilled Nursing Facility Final Payment Rule can be viewed at the Federal Register
  • Information on the Skilled Nursing Facility VBP
  • Information on the Skilled Nursing Facility QRP

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