CMS's proposed rule for 2027 estimates a net increase in Medicare home health payments of 2.4 percent, about $420 million.
2.4%
net increase in Medicare home health payments proposed for 2027
CMS's proposed rule for 2027 estimates a net increase in Medicare home health payments of 2.4 percent, about $420 million.
A 2.1% payment update plus 0.3% from the outlier threshold. The 3.0% temporary cut from 2026 is proposed again, so it adds no change. The final rule had not been published as of October 19, 2026.
Source: CMS, CY 2027 Home Health Prospective Payment System proposed rule, 91 FR 41216, July 6, 2026 (opens in a new tab), Regulatory Impact Analysis, K. Conclusion. Verified October 2026.
Related charts
- From the blog
Medicare home health pay: down 1.3% in 2026, up 2.4% in 2027 if CMS finalizes its proposal
CMS, CY 2026 Home Health Prospective Payment System final rule, December 2, 2025; CMS, CY 2027 Home Health Prospective Payment System proposed rule, 91 FR 41216, July 6, 2026 - From the blog
In 2026, quality scores raised pay for 3,826 home health agencies and cut it for 3,395
CMS Provider Data Catalog, Expanded Home Health Value-Based Purchasing (HHVBP) Model - Agency Data, performance year 2024; CMS, Expanded Home Health Value-Based Purchasing Model - From the blog
At the median TEAM hospital, the hospital stay uses 38% to 70% of the target, by surgery
Kent Applied, TEAM position report and method; CMS, TEAM PY1 preliminary target prices; CMS, Medicare Inpatient Hospitals by Provider and Service, 2024; CMS, TEAM episode construction specifications; CMS, payment standardization method; CMS, TEAM model page - From the blog
A TEAM hospital in Track 3 can owe CMS up to 20% of its total target price in a year
CMS, TEAM Model Overview slides (updated September 2026); 42 CFR 512.550, TEAM reconciliation (eCFR)
Sources for the figures above: CMS, CY 2026 Home Health Prospective Payment System final rule, December 2, 2025 (opens in a new tab); CMS, CY 2027 Home Health Prospective Payment System proposed rule, 91 FR 41216, July 6, 2026 (opens in a new tab); 42 CFR 512.550, Reconciliation process and determination of the reconciliation payment or repayment amount (opens in a new tab).
Related facts
356
of 7,233 agencies got the +5% maximum in 2026
Of the 7,233 home health agencies with a 2026 adjustment under Medicare's expanded value-based purchasing model, 3,826 got an increase, 3,395 a cut, 356 the +5% maximum and 16 the −5% minimum.
Source: CMS Provider Data Catalog, Expanded Home Health Value-Based Purchasing (HHVBP) Model - Agency Data, performance year 2024.
KentApplied4 of 1,539
hospital and surgery pairs where the stay alone exceeds the target
In 4 of 1,539 TEAM hospital and surgery pairs, the hospital stay alone costs more than the 2026 target price, according to Kent Applied's analysis of CMS files.
Source: TEAM position report: where each hospital stands in CMS's TEAM model.
KentApplied38%
of the 2026 target used by the stay
At the median TEAM hospital, the hip or femur fracture stay uses 38% of the 2026 target price, according to Kent Applied's analysis of CMS files.
Source: TEAM position report: where each hospital stands in CMS's TEAM model.
KentApplied
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