A new CMS final rule increases IPPS payment rates by 2.6% for 2026 and finalizes several key policy changes, including the launch of a mandatory bundled payment model, new e-prescribing standards, and adjustments to quality reporting programs.
In 2026, CMS will increase payment rates for the Medicare hospital Inpatient Prospective Payment System (IPPS) by 2.6%. The final rule on (IPPS) payment rates also includes higher uncompensated DSH payments, establishes new interoperability rules for prior authorization, and confirms the launch of a controversial mandatory bundled payment model.
Check out the infographic below for additional information, or read more here.
The FY 2026 IPPS Final RULE by lgale
Luke Gale is the revenue cycle editor for HealthLeaders.
KEY TAKEAWAYS
CMS finalized a 2.6% IPPS payment rate increase for 2026, which reflects a 3.3% market basket update and a 0.7% productivity cut.
The mandatory Transforming Episode Accountability Model (TEAM) is confirmed to launch on January 1, 2026, bundling payments for certain surgical procedures.
New certification criteria will be adopted to support the standardization and adoption of electronic prior authorization processes.