2026-19946RuleSignificantWallet

Medicare Fixes Typos in Hospital Payment Overhaul

Published Date: 9/29/2026

Rule

Summary

This update fixes some typos and technical mistakes in the Medicare payment rules for hospitals starting October 1, 2026. It affects hospitals getting paid for patient care, making sure the payment system and quality programs run smoothly. These corrections help hospitals get the right payments and follow updated health tech standards without delays or confusion.

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Recalculation of FY2027 Payment Factors and Rates

As a result of the corrected hospital data and other typographical fixes, CMS recalculated MS-DRG relative weights, all wage indexes and geographic adjustment factors (GAFs), budget neutrality factors, the outlier fixed-loss cost threshold, national operating standardized amounts, capital Federal rate, and LTCH PPS rates and associated tables for FY 2027 (applicable to discharges on or after October 1, 2026). For example, the corrected FY 2027 capital Federal rate shown in the rule is $539.95 and some national standardized amount figures were corrected to $49,331 in the text.

Corrections Apply to Discharges from Oct 1, 2026

CMS states these technical and typographical corrections apply to hospital discharges occurring on or after October 1, 2026, and are to be treated as if included in the August 4, 2026 FY 2027 final rule.

Restoration of CCN 250078 — DSH Eligibility Restored

CMS restored the data for an IPPS hospital (CMS Certification Number CCN 250078) that had been mistakenly treated as converted to a rural emergency hospital; that hospital is now projected to be eligible for Medicare disproportionate share hospital (DSH) payments including uncompensated care payments for FY 2027, and CMS recalculated Factor 3 and the total uncompensated care amounts for all DSH-eligible hospitals.

Coding, EHR, and CMS Tables Corrected on Website

CMS corrected ICD-10-CM and ICD-10-PCS code references (for example, Adult-onset Still's disease corrected to M06.1 and Infuse Bone Graft procedure codes updated to include XW0U0CC, XW0U3CC, and XW0U4CC), fixed Promoting Interoperability/EHR wording, and updated numerous FY 2027 IPPS/LTCH PPS tables posted on the CMS website (including Table 2, Table 3, Table 4A, Table 5, Tables 8A/8B/8C, Table 12A/12B, Table 18, and Table X 'Estimated Impact On Small Businesses') to reflect the revisions effective for discharges on or after October 1, 2026.

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Key Dates

Published Date
Rule Effective
9/29/2026
10/1/2026

Department and Agencies

Department
Independent Agency
Agency
Health and Human Services Department
Centers for Medicare & Medicaid Services
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