The Centers for Medicare & Medicaid Services (CMS) has issued a final rule updating Medicare hospice payment rates, the hospice wage index, and quality reporting program requirements for fiscal year 2027. On the payment side, CMS finalized updates to the hospice wage index and the hospice payment update percentage for FY 2027. The wage index is used to adjust Medicare hospice payment rates based on local labor costs, which can affect what hospice providers are paid depending on where they are located. The rule also finalizes the hospice cap amount for FY 2027, which sets a limit on the total Medicare payments a hospice provider can receive per patient. The rule also includes clarifying changes to regulation text regarding discharge from hospice care and face-to-face encounter requirements.