July 15, 2026
FOR IMMEDIATE RELEASE
July 15, 2026
Contact: Ellen Mullally
emullally@paltmed.org/410-992-3124
PALTmed Welcomes CMS Proposal to Restore Payment Parity for Nursing Home Care
Post-Acute and Long-Term Care Medical Association (PALTmed) welcomes the Centers for Medicare & Medicaid Services' (CMS) proposal in the CY 2027 Physician Fee Schedule proposed rule (CMS-1848-P) to restore practice expense parity for evaluation and management (E/M) visits in nursing facilities and skilled nursing facilities. The proposal would equalize payment for codes 99304–99316 across nursing home settings, correcting a disparity that PALTmed has urged CMS to address since the CY 2026 practice expense redistribution took effect.
The existing payment differential has never reflected how care is actually delivered in nursing homes. The same clinician caring for the same resident in the same bed could be reimbursed at different rates simply because the resident's Medicare benefit status changed over the course of a few days.
Even more concerning, the lower payment applies to the patients who often require the most intensive care. Residents in a Medicare Part A stay are recovering from hospitalization, managing new or worsening medical conditions, and face the greatest risk of complications and avoidable hospitalization. Paying less for this level of care undervalues the complexity of the work and, over time, threatens access to clinicians in a specialty already challenged by workforce shortages.
“Every clinician who walks into a nursing facility brings the same training, clinical expertise, and practice expenses to the bedside, regardless of the residents in Medicare Part A status,” said Leslie Eber, MD, CMD, FPALTC, president of PALTmed. “We appreciate that CMS listened to the concerns raised by PALTmed and our members, and we urge the agency to finalize this proposal. Nursing home residents are among Medicare's most medically complex patients, and they deserve access to clinicians who can continue providing the high-quality care they need.”
PALTmed advocated for this change through formal comments, direct engagement with CMS, and grassroots efforts by members across the country who shared how the payment reduction affected their practices and the patients they serve. The association will submit comments supporting this proposal during the rule's public comment period and urges CMS to finalize this important correction.
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About Post-Acute and Long-Term Care Medical Association (PALTmed)
Post-Acute and Long-Term Care Medical Association (PALTmed) is the only organization of its kind providing high-quality resources and education to the interdisciplinary team working in PALTC settings, including medical directors, attending physicians, nurse practitioners, physician associates, consultant pharmacists, and doctorly-prepared clinicians. PALTmed leads the way in empowering compassionate and skilled clinicians to deliver person-centered care in the post-acute and long-term care continuum.
Through its Certified Medical Director (CMD) credentialing program, PALTmed upholds excellence in medical leadership within PALTC. Committed to advancing high-quality, compassionate care, PALTmed fosters professional development, evidence-based clinical guidance, and advocacy to enhance outcomes for patients, residents, families, and healthcare teams.
Visit paltmed.org to learn more.