Skip to main content

CMS proposes 6.4% cut to home health payments for CY 2026

By American Hospital Association  
   July 01, 2025

CMS has issued its calendar year 2026 proposed rule for the home health prospective payment system. This rule would reduce HH payments by an estimated 6.4%, or $1.13 billion, in CY 2026. This update includes a 3.2% market basket update, reduced by a 0.8 percentage point cut for productivity. The rule also includes several reductions that CMS proposes as necessary to achieve budget neutral implementation of the Patient-driven Groupings Model. These are a 4.1% permanent reduction to the standard payment rate to prevent future overpayments, as well as a temporary but indefinite 5.0% reduction to recoup past overpayments. CMS also proposes a 0.5% reduction related to high-cost outlier payments. These negative payment updates come on top of numerous other reductions in recent years.

Full story


Get the latest on healthcare leadership in your inbox.