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Agency·Rule

Medicare and Medicaid Programs; Calendar Year 2026 Home Health Prospective Payment System (HH PPS) Rate Update; Requirements for the HH Quality Reporting Program and the HH Value-Based Purchasing Expanded Model; Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program Updates; DMEPOS Accreditation Requirements; Provider Enrollment; and Other Medicare and Medicaid Policies

CMS Proposes 2026 Home Health Payment Overhaul With 2.4% Update, Tighter Provider Rules

Key Points

  • Starting Jan 1, 2026, Medicare updates what it pays home health agencies, including a 2.4% annual update but also separate cuts that reduce the base rate overall.
  • Home health agencies’ pay will depend more on reported patient needs and performance, with updated quality measures and a revised patient survey starting April 2026.
  • CMS drops tracking of a COVID-19 vaccine measure in home health quality reporting and removes some questions about living situation, food, and utilities.
  • Medicare tightens rules to keep unqualified providers and suppliers out, including faster reporting of legal problems (30 days instead of 90) and more ways to revoke enrollment.
  • For medical equipment like walkers, supplies, and some diabetes devices, Medicare updates competitive bidding, adds more oversight, and moves some diabetes devices to a monthly rental model so upgrades can happen sooner.
Medicare MedicaidHealthcare

Impact Analysis

Personal Impact

Life & Work

Home health agencies — many of which are small businesses — face a net payment reduction for 2026 despite the 2.4% market basket update, due to the combined permanent (-1.023%) and temporary (-3.0%) behavior adjustments. CMS acknowledged that some agencies, particularly those in rural areas, may need to reduce their service areas. DMEPOS suppliers also face more burdensome annual accreditation surveys (up from every 3 years) and stricter financial and enrollment requirements, which could squeeze smaller operations.

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5
4
3
-3
ImpactCertaintyScopeDurationSentiment

Programs

Disabilities

State Impacts

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Source Information

Document Type

Federal Rule

Official Title

Medicare and Medicaid Programs; Calendar Year 2026 Home Health Prospective Payment System (HH PPS) Rate Update; Requirements for the HH Quality Reporting Program and the HH Value-Based Purchasing Expanded Model; Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program Updates; DMEPOS Accreditation Requirements; Provider Enrollment; and Other Medicare and Medicaid Policies

Analysis generated by AI. Always verify with official sources.