Medicare
Medicare finalizes a 2.4% raise for home health agencies in 2027, with tighter enrollment rules
The final rule adds about $415 million for agencies that send nurses and therapists to patients' homes, keeps a 3% temporary cut in place, and does not change what Medicare home health covers for patients.
Key facts
- Medicare home health pay rises about 2.4% in 2027.
- A 3% temporary cut stays; no new permanent cut.
- Enrollment rules get stricter for providers.
What happened
The Centers for Medicare & Medicaid Services (CMS) released its final home health payment rule for 2027 on November 4. It raises total Medicare payments to home health agencies by an estimated 2.4%, or about $415 million, compared with 2026. That matches what CMS proposed in July. The increase combines a 2.1% payment update with about 0.3% tied to payments for unusually costly cases.
CMS kept a 3% temporary reduction to the base payment rate and did not add a new permanent cut, though it said it will keep studying 2026 claims. The rule also changes Medicare enrollment rules for nearly all provider types. Revocations will now take effect back to the date a problem began, and home health agencies, hospices and medical equipment suppliers that go through certain majority ownership changes must re-enroll and pass a survey or accreditation. CMS estimates the enrollment changes will save about $82 million a year. Separately, the rule adds certain external infusion pumps and home infusion drugs to Medicare's equipment benefit, and says CMS will give examples of palliative care services that home health can provide.
What it means for families
The services your parent can get from Medicare home health, such as skilled nursing visits and physical therapy at home, stay the same in 2027.
Agencies say rates are tight, so it is still worth asking how quickly an agency can start visits and how often staff will come.
New York families arranging care after a hospital stay can compare Medicare-certified agencies on Medicare's Care Compare website.
What to do this week
- If a parent is leaving the hospital, ask the discharge planner which agencies can start home health within a few days.
- Look up agencies on Medicare Care Compare before choosing.
- Keep the home health plan of care and visit schedule in one folder.
Sources
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