We have great news to share: CMS has finalized its SNF PPS rule, approving a 3.2% increase to Medicare Part A payments for FY 2026 effective October 1, 2025. That translates to approximately $1.16 billion!
This is a clear win for providers, especially considering the 2.8% increase that was initially proposed. In a year full of challenges and uncertainties, this finalized rate sends a signal that your work is being recognized, and support is growing.
Here’s the breakdown of how CMS landed at 3.2%:
+3.3% market basket update
+0.6% forecast error correction
–0.7% productivity adjustment
Keep in mind, this increase doesn’t account for Value-Based Purchasing (VBP) program penalties, which will still reduce payments for some facilities. In FY 2025 alone, those cuts are projected to reach nearly $200 million. So, while the rate increase is exciting, it’s more important than ever to keep your quality scores and documentation strong.
The Point Is: This win is worth celebrating, but it’s also a reminder to stay sharp, stay compliant, and stay focused on delivering great care and great outcomes. QRM is here to help you do just that. Let’s make the most of it, October 1 will be here before we know it.Â
