The Centers for Medicare and Medicaid Services (CMS) released the fiscal year (FY) 2026 Inpatient Prospective Payment System (IPPS) proposed rule on April 11, proposing a net increase of 2.4% for inpatient hospital payments. This proposal reflects a 3.2% increase in the hospital market basket reduced 0.8% by the productivity adjustment.

Key points from the proposed rule include:

• Agency seeks information on streamlining regulations and eliminating administrative burden.
• Changes to the Acute Ischemic Stroke Hospitalization with Claims-Based Risk Adjustment for Stroke Severity outcomes measure to include Medicare Advantage patients and shorten the performance period to two years.
• Removal of four measures including the Hospital Commitment to Health Equity, COVID-19 Vaccination Coverage among Health Care Personnel and Screening for Social Drivers of Health.
• Transforming Episode Accountability Model amended to provide patients with a wider choice of and access to post-acute care.

Your ACC is reviewing the proposed rule and will share feedback with the agency. For more information, access the full text of the proposed rule, the IPPS press release and IPPS fact sheet.

For more on how ACC Advocacy reviews and responds to agency proposals, access the ACC's Regulatory Affairs Roadmap.

Keywords: Centers for Medicare and Medicaid Services, U.S., Inpatients, ACC Advocacy, Prospective Payment System, Health Equity