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Agency·Rule

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

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

4 months ago·View on Federal Register

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

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

State Impacts

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

What Happens Next

Projected impacts based on AI analysis

October 2027

Updated HHCAHPS measures first appear on Care Compare website

Patients and families shopping for home health agencies will see quality scores based on the new survey questions for the first time, giving more current information to help choose a provider.

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.