Medicare Proposes Cuts In 2026 Aggregate Home Health Payments & Temporary Reductions To Recoup Patient-Driven Groupings Model Overpayments

The Centers for Medicare & Medicaid Services (CMS) proposed reimbursement changes that would cut home health payments by 6.4%, according to the calendar year (CY) 2026 Home Health Prospective Payment System (PPS) Proposed Rule issued June 30, 2025. CMS estimates that aggregate Medicare payments to home health agencies during 2026 will be $1.1 billion lower than in 2025. CMS also proposed reducing the prospective payment for a 30-day unit of payment for home health services to start recouping $5.3 billion in overpayments made between 2020 and 2024 after CMS implemented the Patient-Driven Groupings Model (PDGM . . .