FY 2027: what changes on October 1
The finalized payment update, aggregate cap, and election changes.
The finalized update
CMS finalized a 2.3% hospice payment update for FY 2027, effective October 1, 2026. The aggregate cap amount is $36,174.75. This is a provider payment cap calculation, not a personal limit on a patient’s hospice benefit.
Operational changes
The rule requires the election statement addendum for all Medicare beneficiaries at hospice election. It also revises discharge and face-to-face encounter regulations and adds a quality-data submission icon to Care Compare.
Local wage adjustments and quality reporting compliance affect payment. Review the full rule before updating billing or operational policies.
Sources & further reading
General educational information. Discuss individual care decisions with your healthcare team.