Nursing Homes to See $888 Million Payment Bump Under Proposal

April 2, 2026, 10:29 PM UTC

A Trump administration proposal would boost payments to nursing homes by nearly $900 million next year.

The proposed rule (RIN 0938-AV75), released Thursday by the Centers for Medicare & Medicaid Services, proposes increasing payments to these facilities for 2027 by 2.4%, or $888 million.

The proposal also includes changes to the CMS’s nursing home Value Based Purchasing program. If finalized, the adjustments would reduce payments to these facilities by roughly $208.4 million in fiscal year 2027.

The nursing home VBP program is a pay-for-performance program. By statute, the CMS withholds 2% of nursing homes’ traditional Medicare “Part A” ...

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