Indian Health Service publishes higher 2026 reimbursement rates

By Cara Cowan Watts Cherokee 411

The Indian Health Service has published its calendar year 2026 All-Inclusive Rates, showing measurable increases in both inpatient and outpatient reimbursement compared to 2025.

The rates, often called AIRs or encounter rates, were published Jan. 22 in the Federal Register and apply to care provided by Indian Health Service and Tribal facilities for Medicare and Medicaid beneficiaries, participants in other federal programs, and recoveries under the Federal Medical Care Recovery Act.

According to IHS, the updated rates affect payments for services delivered at IHS-operated and Tribal hospitals and clinics nationwide. The rates are recalculated annually and are a key funding mechanism for facilities that serve American Indian and Alaska Native patients.

In a letter to Tribal leaders, IHS Chief of Staff Clayton W. Fulton, a citizen of the Cherokee Nation, said the 2026 rates reflect increases over the prior year and emphasized their importance to Tribal health systems that rely on third-party reimbursements to supplement chronically underfunded federal appropriations.

The Centers for Medicare and Medicaid Services has also finalized a rule continuing add-on payments for certain high-cost outpatient drugs for Medicare beneficiaries receiving care at IHS and Tribal hospitals in 2026. Eligible drugs are listed in Addendum Q of the CMS final rule.

The full Federal Register notice and detailed rate tables are available on the IHS reimbursement rates website.