CMS Finalizes FY 2027 Medicare Hospital Payment and Quality Updates
CMS issued its final FY 2027 IPPS and LTCH PPS rule, increasing IPPS payment rates by 2.3% and increasing total hospital payments by an estimated $2.1 billion. The rule also makes several changes affecting hospital quality and operations, including adding a sepsis readmission measure to the Hospital Readmissions Reduction Program, revising certain mortality measures used in quality programs, updating Medicare Promoting Interoperability requirements, and finalizing changes to graduate medical education and other hospital payment policies.
HHS-OIG Finds Continued Weaknesses in HHS Improper Payment Oversight
The Office of Inspector General found that HHS did not fully comply with federal improper payment requirements for fiscal year 2025. The audit report identified ongoing issues across Medicare Advantage, Medicare Part D, Medicaid, and CHIP, including programs that did not show improvement in improper payment rates, incomplete risk assessments, and outstanding recovery audit work for certain Medicare Advantage overpayments. OIG recommended that HHS take additional steps to improve oversight, recover improper payments, and strengthen corrective action efforts.