Medicare to raise hospital inpatient payment rates 2.3% in FY 2027

Full analysis

The Centers for Medicare & Medicaid Services finalized a 2.3% increase in Medicare payment rates for inpatient hospitals for fiscal year 2027, starting October 1, 2026. The rate reflects a projected market basket increase of 3.2% reduced by a 0.9 percentage point productivity adjustment. CMS estimates the changes will increase total hospital payments by approximately $2.1 billion, with an additional $779 million for cases involving new medical technologies. Separately, temporary extra payments for Medicare-Dependent Hospitals and low-volume hospitals are set to expire December 31, 2026, though Congress has extended them in the past.