On Wednesday, July 1, the Centers for Medicare and Medicaid Services (CMS) published the CY2027 Home Health Proposed Rule with a 2.4% aggregate update as well as an accompanying fact sheet. 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. This is in response to comments from LeadingAge and other advocates in CY2026 that CMS could not accurately determine if the behavioral changes were a reaction to the original transition from the previous payment system to the patient-driven groupings model.
In addition to the payment update, CMS is making changes to the reporting deadlines of the home health quality reporting program, expanding reasons for revocation of all provider enrollments and retroactive revocations, and requesting information on a home health-specific wage index and an advance care planning measure for home health providers.
Finally, in the draft rule, CMS discusses how home health can be used appropriately to support community-based palliative care programs and announced that it will be releasing updated subregulatory guidance along with the publication of the CY2027 Home Health Final Rule. “CMS believes the Medicare home health benefit can be an important step in the care continuum when a patient needs palliative care, either during episodes of serious illness or near end of life,” noted CMS. “Therefore, in this proposed rule, CMS states that skilled palliative care services can be furnished and billed under existing Medicare home health benefits for eligible patients with serious illnesses.”
LeadingAge will host a call next Tuesday, July 7 at 2 p.m. ET to discuss the proposals in this rule. All LeadingAge members are welcome to join and can sign up here.