CMS Proposed FY 2026 Hospice Payment Rate Increase – Not Enough Says Industry

The Centers for Medicare and Medicaid Services announced its proposed Hospice Wage Index and Payment Rate Update proposed rule for FY 2026.

The proposed reimbursement update will raise the base payment rate by 2.4%, lower than the 2025 increase of 2.9%. The increase represents $695 million rise in total hospital payments, Hospice News reports. CMS will also hold its 5% cap on any year-over-year wage increase. According to stakeholders, the increase falls far short of what is needed by the industry. From Steven Landers, CEO of the National Alliance for Care at Home:

Without meaningful adjustments, hospices across the country will face serious challenges — jeopardizing access to care for terminally ill patients and placing added strain on families already facing the unimaginable. CMS must act to protect this vital benefit and ensure that every American can receive compassionate, dignified care at the end of life.

Healthcare Finance News notes that CMS is floating changes for the Hospice Quality Reporting Program (HQRP) that would fix a so-called “typographical error” in a regulation to reaffirm the Hospice Outcomes and Patient Evaluation (HOPE) requirements. One of the RFIs included in the notice is related to one of President Donald Trump’s executive orders requiring agencies to reduce private expenditures necessary to comply with federal regulations.

The proposed rule and fact sheet can be reviewed at the CMS Newsroom.