Medicare Seeks $1.1 Billion Pay Cut for Home Health Agencies

Home health agencies in 2026 would see their Medicare payments decrease by 6.4%—or roughly $1.1 billion—under a proposed payment rule released Monday by the Trump administration.

This proposed payment adjustment (RIN 0938-AV53) includes a 4.059% pay cut aimed at accounting for Medicare’s shift toward adopting its Patient-Driven Groupings Model, a value-based payment system that reimburses providers based on patient characteristics and care needs.

The CMS proposal also incorporates plans to apply an additional payment cut of 5% just for the 2026 calendar year.

The payment offsets are part of a plan from the Centers for Medicare & ...