Complete Story
07/07/2026
CMS Releases 2027 Home Health Proposed Rule: Payment Update, Palliative Care, and Program Integrity Changes
CMS has released the CY 2027 Home Health Prospective Payment System (HH PPS) Proposed Rule, outlining proposed payment, quality, and program integrity changes that would affect home health agencies and, in several areas, hospice providers as well.
The proposed rule does not include an additional permanent behavioral adjustment, though CMS is proposing a 3% temporary adjustment to continue recouping prior overpayments associated with the Patient Driven Groupings Model (PDGM).
The proposal also includes several significant policy initiatives. CMS announced that it plans to issue new guidance clarifying how eligible patients with serious illness may receive community-based palliative care through the existing Medicare home health benefit. Additional proposals include updates to Home Health Quality Reporting Program deadlines, requests for feedback on a home health specific wage index and an advance care planning quality measure, and expanded Medicare provider enrollment and revocation authorities aimed at strengthening program integrity across all provider types.
Why it matters
This year's proposed rule offers welcome payment relief for home health agencies while signaling continued federal focus on quality, compliance, and program integrity. It also highlights CMS's growing interest in expanding access to community-based palliative care, reinforcing CMS's interest in expanding access to community-based palliative care for eligible beneficiaries. While these proposals are not yet final, they offer an early look at priorities that could shape operations in 2027 and beyond.
What to do
- Review the proposed rule and fact sheet to understand how the payment, quality reporting, and enrollment proposals could affect your organization.
- Evaluate current compliance and Medicare enrollment processes in light of the proposed program integrity changes.
- Consider how expanded recognition of community-based palliative care could support your organization's care delivery strategy.
- Watch for additional analysis from LeadingAge and prepare to submit comments before the rule is finalized.