CMS Proposes 2.4% Update For Home Health Providers, Only Temporary Adjustment

The Centers for Medicare and Medicaid Services (CMS) published on July 1, 2026, the Calendar Year (CY) 2027 Home Health Proposed Rule with a 2.4% aggregate update. An accompanying fact sheet can be found here.

This year, CMS decided not to apply a permanent adjustment but will apply a -3% temporary adjustment to recoup 10% of the outstanding temporary adjustments remaining from previous calendar year rules. This is in response to comments from LeadingAge and other sector advocates in CY2026 that CMS could not accurately determine if the behavioral changes were a reaction to the original transition from the previous payment system to the patient driven groupings model.

In addition to the payment update, CMS is making changes to the reporting deadlines of the home health quality reporting program, expanding reasons for revocation of all provider enrollments and retroactive revocations, and requesting information on a home health specific wage index and an advance care planning measure for home health providers.

Finally, CMS discusses how home health can be used appropriately to support community-based palliative care programs and will be releasing updated subregulatory guidance along with the publication of the CY2027 Home Health Final Rule.

LeadingAge will host a call on Tuesday, July 7 at 2 p.m. ET to discuss the proposals in this rule. All LeadingAge members are welcome to join and can sign up here.