CMS Projects Home Health Spending Growth to Slow to 7.9% in 2026
CMS projects national home health care spending will grow 7.9% in 2026, down from 10.3% in 2025, according to a Health Affairs report on national health expenditure projections. The deceleration reflects moderating post-pandemic utilization trends while still indicating strong growth in the home health sector. The projections cover total national home health spending across all payers, including Medicare, Medicaid, and commercial insurance. For Medicaid managed care organizations with home health benefit responsibility or LTSS carve-ins, the projections signal continued upward pressure on capitated rates and medical expense ratios in the home health category.
Sustained high home health spending growth will drive capitation rate negotiations and medical loss ratio management for MCOs covering home health benefits or LTSS services delivered in home settings.
LTSS · Managed Care · Finance
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