Federal Policy
CMS Proposes Home Health Payment Changes for Palliative Care and Home Infusion
CMS released its CY 2027 Home Health Prospective Payment System proposed rule, introducing payment changes for palliative care services, home infusion therapy, and durable medical equipment in the home health setting. The proposed rule affects Medicare home health agencies and their payment structures beginning January 1, 2027. The changes reflect CMS's broader strategy to expand access to home-based care alternatives and shift care delivery from institutional to home settings. Comments on the proposed rule are typically due 60 days after publication in the Federal Register.
Why it mattersState Medicaid agencies that align home health payment methodologies with Medicare's HH PPS may need to evaluate whether these proposed changes — particularly around palliative care and home infusion — require state plan amendments or rate adjustments.