Complete Story
08/04/2026
CMS Finalizes FY 2027 Hospice Rule: What Providers Need to Know
CMS has finalized the FY 2027 Hospice Wage Index Final Rule, making only a few changes from the proposed rule released earlier this year. The rule includes a 2.3% Medicare payment update, finalizes the Service and Spending Variation Index (SSVI) as proposed, and requires hospices to provide the Election Statement Addendum to every Medicare beneficiary at the time of hospice election beginning Oct. 1, 2026.
CMS also finalized its proposal to add an icon on Care Compare identifying hospices that fail to meet Hospice Quality Reporting Program (HQRP) submission requirements. Providers already face a payment reduction for failing to meet reporting requirements, but the new icon will make that information visible to patients and families.
While many providers urged CMS to reconsider the Election Statement Addendum requirement because of concerns about administrative burden and potential confusion for families, the agency finalized the proposal without significant changes.
Why it matters
The final rule confirms several operational changes hospices should begin preparing for now. Most notably, organizations will need processes to ensure every Medicare beneficiary receives the Election Statement Addendum at admission beginning Oct. 1. The finalized SSVI reinforces CMS' continued emphasis on hospice utilization, quality reporting, and program integrity, signaling continued scrutiny of documentation, claims data, and care delivery patterns.
What to do
- Review the final rule and CMS fact sheet with your clinical, compliance, and billing teams.
- Begin updating admission workflows to incorporate the required Election Statement Addendum before the Oct. 1 implementation date.
- Continue monitoring quality reporting performance to avoid both payment reductions and the new Care Compare quality reporting icon.
- Watch for additional analysis and implementation resources from LeadingAge Ohio and LeadingAge National.