On April 2, 2026, CMS released its proposed rule for FY 2027 hospice payment updates and quality reporting requirements, along with a supporting fact sheet. The proposal includes a 2.4% payment increase, reflecting a 3.2% market basket update reduced by a 0.8% productivity adjustment, and raises the hospice cap to $36,210.11.

CMS also introduces a new Service and Spending Variation Index (SSVI) to identify outlier hospices based on utilization and non-hospice spending. Additional proposals would require delivery of the election statement addendum at the time of hospice election beginning October 1, 2026, and allow greater flexibility in discharge authority and telehealth face-to-face requirements.

The rule confirms all 2025 HOPE submissions as timely and proposes adding a public indicator on Medicare.gov for failure to meet reporting requirements. CMS is also seeking input on expanding community-based palliative care, developing a hospice-specific wage index, and addressing overlap with Medical Aid in Dying.

Comments are due June 1, 2026. CMS estimates the rule would increase hospice payments by approximately $785 million in FY 2027.