Medicare Removes Homelessness & Housing Instability Codes From Higher-Payment Hospital Classification

Beginning October 1, 2026, Medicare will no longer classify 10 diagnosis codes for homelessness, inadequate housing, and housing instability as complications or comorbidities (CCs) when determining payment for inpatient hospital stays. The change means documenting one of these housing circumstances will no longer provide the CC severity designation that can affect Medicare Severity Diagnosis Related Group (MS-DRG) assignment and increase payment for an inpatient stay.

The Centers for Medicare & Medicaid Services (CMS) elevated homelessness diagnosis codes from non-complication or comorbidity (NonCC) status to CC status beginning October 1, 2023. The change was intended to recognize the additional . . .