Health Care Policy Update: CMS Releases Proposed CY2027 Medicare Home Health Payment Regulation

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Health Care Policy Update: CMS Releases Proposed CY2027 Medicare Home Health Payment Regulation

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Health Care Policy Update

CMS Releases Proposed CY2027 Medicare

Home Health Payment Regulation

Government Regulations

CMS Releases Proposed CY2027 Medicare Home Health 01 July 2026

Payment Reg, including a net +2.4% Payment Update High Yield Credit

United StatesOn July 1, the Centers for Medicare and Medicaid Services (CMS) released its proposed

Washington Healthcare

CY2027 Medicare Home Health payment regulation, including a net +2.4% increase in

payments for 2027. The update is composed of a market basket (MB) increase of 3.1%

less a 1.0% productivity reduction, no additional permanent reductions, and a +0.3% Andrew B. Bressler, CFA Research Analyst

outlier adjustment increase. CMS also maintained the 3.0% temporary adjustment BofAS

reduction that was included in the 2026 regulation. All in, CMS estimates total Medicare +1andy.b.bressler@bofa.com202 442 7454

home health payments will increase by $420 million in 2027, including $370 million

increase from the market basket update less productivity, and $50 million from the

outlier payment increases. CMS proposes a national 30-day standard payment amount CMS: Centers for Medicare and

(including the temporary 3% adjustment) of $2,051.29 in 2027, up slightly from Medicaid Services

$2,038.22 in 2026 (including the temporary 3% adjustment).

PDGM: Patient Driven Groupings

Overall, we view the proposed +2.4% payment increase for CY2027 as a Model

positive as CMS did not include additional permanent behavioral adjustments

and maintains the existing 3% temporary adjustments to recoup overpayments. HHA: Home Health Agency

CMS Proposes Maintaining 3% Temporary Adjustments MB: Market Basket