November 13, 2026
Executive Office of Health and Human Services
Friday, November 13, 2026,10:00 a.m.
The regulation will go into effect as an emergency on October 1, 2026. The proposed amendments implement fiscal year 2027 (FY27) budget requirements. The following adjustments are being made to the rates, consistent with the FY27 budget.
- Updating standard nursing, operating, capital, pediatric, and other facility-specific rates for rate year 2027. The amendments apply a 7.04% cost adjustment factor to both nursing and operating standard payments and updates the patient-driven payment model (PDPM) nursing standard payment amounts accordingly. The operating cost standard payment increases to $128.14 per day. The capital cost adjustment factor is also updated to 6.65%.
- Revising financial statement reporting requirements.
- Revising the substance use disorder (SUD) add-on and replacing the SUD induction-period add-on with a medication for opioid use disorder (MOUD) add-on, including new eligibility, staffing, and compliance requirements.
- Reducing the bariatric add-on from $300 to $200 per member per day and clarifying its applicability with other add-ons.
- Strengthening staffing incentives by establishing an 8% downward adjustment for facilities at or below 3.00 hours per patient day (HPPD), while exempting facilities maintaining at least 4.00 HPPD from the direct care cost quotient (DCC-Q) downward adjustment.
- Removing expired COVID-19 preparedness payments and the prior rate year's $25 million statewide supplemental payment.
- Making annual conforming and technical updates to dates, reporting periods, quality measures, PDPM references, and other payment provisions.
