FY 2026 IPPS/LTCH PPS Proposed Rule Summary

On April 11, 2025, CMS released its proposed rule describing federal fiscal year (FY) 2026 policies and rates for Medicare’s inpatient prospective payment system (IPPS) and the long-term care hospital (LTCH) prospective payment system (PPS). The proposed rule will be published in the Federal Register on April 30, 2025. The public comment period on the rule will end on June 10, 2025. The payment rates and policies described in the FY 2026 IPPS/LTCH PPS proposed rule affect Medicare’s operating and capital payments for short-term acute care hospital inpatient services and services provided in LTCHs paid under their respective prospective payment systems. Unless otherwise specified, policies will be effective October 1, 2025. The proposed rule also includes proposed changes to the TEAM Model that begins January 1, 2026, and requests public comment on requests for information to gather public input on the transition to digital quality measurement in CMS quality reporting programs. The proposed rule also references Executive Order (E.O.) 14192 “Unleashing Prosperity Through Deregulation,” dated January 31, 2025. Consistent with EO 14192’s focus on reducing regulatory compliance costs, the proposed rule requests public input on approaches and opportunities to streamline regulations and reduce administrative burdens on providers, suppliers, beneficiaries, and other interested parties participating in the Medicare program. All comments should be made to: www.cms.gov/medicare-regulatory-relief-rfi.

CMS makes many data files available to support analysis of the proposed rule. These data files are generally available at: FY 2026 IPPS Proposed Rule Home Page | CMS. Numbered tables included in the IPPS/LTCH rule are only available on the CMS website at the above hyperlink.