CMS Releases IPPS Proposed Rule for FY 2026

The Centers for Medicare and Medicaid Services (CMS) released an unpublished proposed rule April 11 that would update Medicare payment policies for hospitals under the Inpatient Prospective Payment System (IPPS) and the Long-Term Care Hospital Prospective Payment System (LTCH PPS) for fiscal year 2026. The proposed rule is scheduled for publication in the Federal Register April 30. CMS released a fact sheet that summarizes key provisions.

CMS proposes a 2.4% net increase in operating payment rates paid under the IPPS for general acute care hospitals that successfully participate in the Hospital Inpatient Quality Reporting Program and are electronic health record users. Additionally, the agency expects to increase the LTCH PPS standard federal payment rate by a net 2.6%.

In the proposed rule, the agency has included a previously published request for information seeking input on opportunities to streamline regulations and reduce burdens on providers. The agency is accepting comments on the proposed rule through June 10.