CMS Newsroom · April 26, 2026 · Primary source
FY 2027 Hospital Inpatient Prospective Payment System (IPPS) and Long-Term Care Hospital Prospective Payment System (LTCH PPS) Proposed Rule, CMS-1849-P
Summary
CMS has released the proposed rule (CMS-1849-P) for the Fiscal Year 2027 Hospital Inpatient Prospective Payment System (IPPS) and Long-Term Care Hospital Prospective Payment System (LTCH PPS). This annual rulemaking updates Medicare payment rates, wage indexes, and policy parameters for inpatient hospital services paid under IPPS and LTCH PPS, pursuant to the Social Security Act. The proposed rule typically includes changes to MS-DRG classifications, quality reporting requirements, and graduate medical education (GME) policy. Public comment will be solicited, with a final rule expected later in the calendar year for implementation on October 1, 2026.
What this may mean
This proposed rule will directly affect hospitals, health systems, and long-term care hospitals by setting Medicare payment rates and policy for FY 2027. Organizations should review proposed rate changes, quality measure updates, and any new documentation or coding requirements that could affect revenue cycle, clinical documentation improvement, and compliance programs. Finance, revenue cycle, quality, and compliance teams should coordinate comment letters and budget planning in anticipation of the final rule.
Informational only. Not legal, medical, financial, or other professional advice. Always consult a qualified professional familiar with your specific facts before relying on any item.
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