Policy & oversight
Medicare Raises Hospice Pay 2.3 Percent in FY 2027 and Requires a New Patient Disclosure Form
A final rule issued late July 2026 increases hospice payment rates by an estimated 755 million dollars for the fiscal year starting October 1 and for the first time requires hospices to hand every new patient a written list of what the hospice benefit will not cover.
By the Goodsurance editorial teamJuly 24, 2026
CMS issued the fiscal year 2027 Hospice Wage Index and Payment Rate Update final rule, designated CMS-1851-F, around July 28, 2026, with an effective date of October 1, 2026. Medicare will increase hospice payment rates by 2.3 percent, an amount CMS estimates will add roughly 755 million dollars to total hospice payments compared with fiscal year 2026. The aggregate hospice cap, which limits how much Medicare pays a single hospice for care provided to a given patient in a year, rises to 36,174.75 dollars, up from 35,361.44 dollars in fiscal year 2026. Alongside the payment changes, the rule finalizes a new disclosure requirement: starting October 1, 2026, every hospice must give Medicare beneficiaries an election statement addendum at the time they choose hospice care. The addendum is a written document listing the specific conditions, items, services, and drugs the hospice has determined are not related to the patient's terminal illness and therefore will not be paid for under the hospice benefit. Because services deemed unrelated to the terminal condition can still be billed to regular Medicare, patients need to understand that boundary before electing hospice. The rule also updates quality reporting requirements and will flag on Care Compare any hospice that fails to submit required data.
Starting October 2026, hospice patients must receive a written summary of what their benefit does not cover under a new Medicare rule.
In plain words
Medicare will pay hospices about 2.3 percent more starting October 1, 2026. CMS estimates that adds around 755 million dollars across the country. There is also a new rule. When someone chooses hospice care, the hospice must now hand them a written list of services that are NOT covered under the hospice benefit. This matters because hospice covers end-of-life care related to the terminal illness, but some other treatments are not included. The new form helps patients understand what they can still use regular Medicare for. Low-performing hospices will also be flagged on the Medicare website.
Understand the basics first
Source: CMS
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