Medicare Pitches $4 Billion Payment Hike for Hospitals in 2026

General acute-care hospitals would see a 2.4% pay increase, or an extra $4 billion, in Medicare reimbursements in fiscal year 2026 under a proposed rule released Friday by the Centers for Medicare & Medicaid Services.

The proposed rule (RIN: 0938-AV45) includes a $1.5 billion increase in Medicare uncompensated care payments to disproportionate share hospitals in FY 2026, a CMS fact sheet said.

The proposal would also update Medicare payment policies and rates for inpatient and long-term care hospitals under the Medicare hospital Inpatient Prospective Payment System (IPPS).

General acute-care hospitals provide inpatient medical and surgical care to patients who ...