CMS Proposes 2.4% Home Health Payment Increase Alongside Separate 3% Temporary Cut
CMS's proposed 2027 home health rule combines a $420 million aggregate payment increase with a separate 3% temporary reduction to recover an estimated $4.9 billion in post-2020 PDGM payment adjustments, applied at 3% per year rather than all at once. The rule also seeks expanded Medicare enrollment powers, including retroactive revocations, projected to save $82 million annually and affect roughly 337 providers per year. Industry groups including the AHA and NACH warn the temporary reduction may push rates below actual costs and restrict patient access, particularly in rural areas, though the final rule and CMS's response to comments are still pending.