As part of the Trump administration’s ongoing effort to control waste, fraud, and abuse within the Medicare program, the Centers for Medicare and Medicaid Services (CMS) included a number of proposals in the CY2027 Home Health Proposed Rule which will impact all Medicare providers including home health, hospice, and skilled nursing providers. Details here.

In a statement issued July 1, LeadingAge President and CEO Katie Smith Sloan said, “The 2.4% payment increase and decision to forgo a permanent behavioral adjustment for CY2027 … are positive proposals from the Centers for Medicare and Medicaid Services (CMS). … Abstaining from the permanent behavioral adjustment is a direct result of arguments we and our nonprofit and mission-driven members, along with other stakeholders, put forth during the CY2026 rulemaking cycle. … Still, though welcome, these moves do not resolve home health agencies’ underlying financial strain.” Read the full statement here.

The Centers for Medicare and Medicaid Services (CMS) published on July 1, 2026, the Calendar Year (CY) 2027 Home Health Proposed Rule with a 2.4% aggregate update. This year, CMS decided not to apply a permanent adjustment but will apply a -3% temporary adjustment to recoup 10% of the outstanding temporary adjustments remaining from previous calendar year rules. More on the rule here.