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03/17/2026
MedPAC Recommends Home Health Cuts, Flat Hospice Update for 2027
The Medicare Payment Advisory Commission (MedPAC) released its March 2026 Report to Congress, recommending continued payment pressure for both home health and hospice providers.
For home health, MedPAC again recommended a 7% reduction in Medicare fee-for-service payments. For hospice, the Commission recommended no payment update for FY 2027.
While these recommendations are not final policy, they are influential and often shape future CMS rulemaking and Congressional discussions.
What MedPAC is signaling:
Continued concern about home health margins under PDGM
Ongoing scrutiny of utilization patterns and payment accuracy
Increasing focus on hospice length of stay, diagnosis mix, and eligibility
Why it matters:
These recommendations reinforce the direction of federal policy, even if not immediately implemented
Home health agencies could face continued or future payment reductions on top of recent cuts
Hospice providers should expect ongoing pressure without meaningful payment increases despite rising costs and complexity
This aligns with broader federal focus on program integrity, documentation, and utilization trends
What to Do:
Share this update with finance and leadership teams as part of 2026–2027 planning
Continue monitoring CMS rulemaking and Congressional activity tied to payment reform
Reinforce documentation and eligibility practices as payment pressure and oversight continue to intersect
Stay engaged in advocacy efforts
LeadingAge and national partners have strongly opposed these recommendations, emphasizing the growing gap between payment updates and workforce, acuity, and access realities.