Hospice FY 2027 corrected rates and 2.3-percent all-hospice impact estimate
Oct 4, 2026 edition · GC-2026-0146 · Published 2026-10-04 · Version 2 · Final
CMS’s corrected FY 2027 hospice tables retain a 2.3-percent all-hospice impact estimate; the 20,000-or-more RHC-day subgroup shows 2.2 percent.
What happened
CMS replaced Transmittal 13924 with September 30 Transmittal 13976, CR 14557, updating FY 2027 hospice payment tables after the hospice wage-index recalculation. The instruction is effective October 1 with October 5 implementation. The base update remains 2.3 percent, derived from the 3.2-percent market basket less 0.9 percentage point for productivity. Hospices failing quality reporting receive a four-percentage-point reduction, producing a negative 1.7-percent update. The FY 2027 aggregate cap is $36,174.75, with the cap year aligned to October 1 through September 30.
The separate September 30 Federal Register correction explains that omitted hospital wage data required recalculating hospice wage indexes, standardization factors and national rates by level of care, including the non-reporting tables. Corrected Table 22 estimates a 2.3-percent overall total impact for all hospices. Its 20,000-or-more routine-home-care-day subgroup has a negative 0.1-percent wage-data effect and a 2.2-percent total impact; other subgroup estimates also vary. These aggregate and subgroup estimates do not determine an individual hospice’s wage-adjusted claim payment. The instruction preserves geographic wage adjustments and county-specific transition-code handling where applicable. As of October 4, teams need the current replacement tables, correct location and quality status, and validation against the October 5 implementation milestone.
Scope and timing
- Authority status
- Final
- Applicability
- Operationally relevant
- Audience
- Health systems, Provider networks
- Jurisdiction
- Federal
- Affected functions
- Revenue Cycle, Compliance, Clinical Operations
- Responsible owner
- Revenue Cycle
- Recorded date
- 2026-10-05
- Date type
- implementation
Why it matters
The all-hospice estimate, subgroup impacts, wage-adjusted rates and quality reductions describe different levels of analysis. Applying a subgroup estimate as a universal rate could misstate budgets and claims.
Recommended action
Reconcile the September 30 replacement tables, geographic and transition-code inputs, quality status and cap amount. Use the 2.3-percent all-hospice and applicable subgroup estimates for their stated budgeting scope, and validate actual October 5 implementation with the hospice-specific rate.
Implementation playbook
- Reconcile corrected wage-adjusted rates, quality-reporting status and cap instructions; validate actual deployment against the October 5 implementation date. Distinguish Table 22’s 2.3-percent all-hospice impact from the 2.2-percent large-hospice subgroup estimate and the individual claim rate. Revenue Cycle · Due 2026-10-05
- Record the applicability assessment and validate the affected workflow with its operational owner. This is an internal review target, not an additional statutory deadline. Compliance · Due 2026-10-12
Sources
- CMS Transmittal R13976CPOfficial · Centers for Medicare & Medicaid Services · 2026-09-30 · Source review 2026-10-04
- Medicare Program; FY 2027 Hospice Wage Index and Payment Rate Update and Hospice Quality Reporting Program Requirements; CorrectionOfficial · Health and Human Services Department, Centers for Medicare & Medicaid Services · 2026-09-30 · Source review 2026-10-05
Complete edition and supplemental material
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