CMS Finalizes 2.4% Medicare Home Health Pay Hike, Tighter Enrollment Rules
CMS finalized its calendar year 2027 home health payment rule, projecting a 2.4% aggregate payment increase, or about $415 million, combining a 2.1% payment update and an estimated 0.3% fixed dollar loss adjustment. The rule also finalizes a 3% temporary reduction to the national standardized base payment rate to continue recouping prior overpayments tied to the payment model. CMS withdrew or narrowed some enrollment proposals but retained broader provider enrollment and disclosure provisions, including treating clinical leadership titles as presumptively reportable managing employees, with revocations that can apply retroactively to when noncompliance began. Home health leaders told Home Health Care News the rate increase is welcome but does not fully offset recruitment and compliance costs, particularly for providers in rural areas.