CORRECT: CMS Proposes 6.4% Cut to Home Health Payments in 2026

(Corrects payment cut in the headline, clarifies amount in lede.)

The Centers for Medicare & Medicaid Services issued a proposed rule that would reduce Medicare payments to home health agencies by $1.14 billion for care in 2026.

• Proposal includes a permanent 4.059% cut to the base rate to account for shift to the patient-driven groupings model
• CMS also proposes a temporary 5.0% cut to recoup retrospective overpayments, though this wouldn’t be applied each year after 2026
• CMS expects to continue evaluating data for future temporary adjustments beyond 2026

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