01/22/2026

MedPAC Recommends 4% Medicare Pay Cut for Nursing Homes Amid MA Pressure

The Medicare Payment Advisory Committee voted January 15 to recommend a 4 percent reduction in Medicare payments to skilled nursing facilities for fiscal year 2027, citing projected Medicare margins of 25 percent despite declining facility supply and utilization through 2024. MedPAC’s analysis focuses on fee-for-service Medicare, which represents a median 8 percent of nursing home stays nationally.

Several commissioners acknowledged that the recommendation does not fully account for mounting pressure from Medicare Advantage, Medicaid underfunding, and workforce instability, noting the need for broader, cross-payer analysis to assess overall financial viability. MedPAC also voted to recommend a 7 percent payment reduction for home health agencies, with all recommendations set to be included in the commission’s March report to Congress. For more details, read the full article at McKnight’s Long-Term Care News.