The Centers for Medicare & Medicaid Services finalized a rule on Wednesday updating the End-Stage Renal Disease Prospective Payment System, acute kidney injury dialysis payment, and the ESRD Quality Incentive Program. The rule increases aggregate Medicare payments to end-stage renal disease facilities by approximately $240 million in calendar year 2027.
The calendar year 2027 end-stage renal disease prospective payment system base rate is set at $297.52. This represents an increase from the calendar year 2026 base rate of $281.71. Beneficiary coinsurance payments are estimated to increase by approximately $50 million in calendar year 2027.
Medicare payments for renal dialysis services furnished to individuals with acute kidney injury will increase by approximately $5 million. The home and self-dialysis training add-on payment adjustment increases to $138.00 from $95.60.
The pediatric outlier fixed dollar loss amount increases from $162.43 to $229.49, while the adult outlier fixed dollar loss amount rises from $14.80 to $90.60. The regulations are effective on January 1, 2027.
What's New
The proposed CY 2027 ESRD PPS changes are projected to increase aggregate Medicare payments by 1.1% ($70 million) compared to CY 2026, with hospital-based facilities seeing a 2.0% increase. CMS proposed expanding the Low-Volume Payment Adjustment (LVPA) threshold from 4,000 to 8,000 treatments, increasing the number of LVPA tiers from 2 to 6 to better align payments with facility costs. Primary sources: cms.gov, federalregister.gov
Why It Matters
These changes take effect January 1, 2027, alongside updated quality incentive program requirements that carry an estimated economic impact of $133.2 million.
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