Statement on the CY 2026 Medicare Home Health Final Rule

Premier appreciates the Centers for Medicare & Medicaid Services (CMS)’ decision not to move forward with the proposed 6.4 percent cut to home health Medicare payments for calendar year (CY) 2026, which we warned would severely strain home health providers and could have unintended consequences to patient care. Still, the finalized 1.3 percent reduction comes at a time when providers are grappling with skyrocketing labor costs, inflation, and rising operational expenses, leaving home health providers with payment rates that do not reflect the current landscape. Premier urges CMS to continue monitoring the Patient‑Driven Groupings Model and to use its discretion to ensure reimbursement predictability so providers can maintain access to high‑quality home health services.