CMS Proposes Medicare Home Health Payment Rule

On July 6, 2026, the Centers for Medicare & Medicaid Services proposed the Medicare home health rule, updating home health payment rates in accordance with existing statutory and regulatory requirements. The proposal marks the agency’s latest annual update to how home health agencies are reimbursed under the Medicare program, and it introduces several notable changes that stakeholders across the home healthcare industry will want to review closely.

What the Medicare Home Health Rule Proposes

The proposed Medicare home health rule includes a range of discussions and considerations, including various changes related to durable medical equipment requirements. These provisions could affect how home health agencies procure, document and bill for equipment used in patient care, making this a significant area of the proposal for providers to evaluate.

A Request for Information on Wage Index

Alongside the payment rate updates, the rule includes a request for information on a home health-specific wage index. This signals that CMS is exploring whether the current wage index methodology, which adjusts payments based on regional labor costs, adequately reflects the realities of the home health sector specifically, as opposed to relying on broader hospital-based wage data.

Why the Medicare Home Health Rule Matters for the Industry

CMS expects the Medicare home health rule to impact the home healthcare services industry significantly. Payment rate updates directly affect the financial sustainability of home health agencies, particularly smaller providers operating on thinner margins, making this proposal an important one for industry stakeholders to track closely.

Durable Medical Equipment Considerations

The durable medical equipment provisions within the rule could reshape documentation and compliance requirements for agencies that supply equipment as part of home-based care. Providers should review these sections carefully, as changes here may require operational adjustments ahead of the rule’s eventual finalization.

How Stakeholders Can Respond to the Medicare Home Health Rule

CMS is inviting public comment on the proposed Medicare home health rule, with a submission deadline of August 31, 2026. This comment period gives home health agencies, industry associations, clinicians and other stakeholders an opportunity to weigh in before the rule is finalized, potentially shaping the final payment methodology and equipment requirements.

What Comments Can Address

Given the rule’s inclusion of a request for information on the wage index, stakeholders have a specific opportunity to submit data and perspectives on how a home health-specific index might function differently from current methodologies. Comments addressing the durable medical equipment provisions may also carry weight, particularly from organizations with direct operational experience navigating those requirements.

Timeline for the Medicare Home Health Rule

With the proposed rule published on July 6, 2026, and comments due by August 31, 2026, stakeholders have a defined window to prepare and submit feedback. As with prior annual updates, CMS is expected to review public comments before issuing a final rule later in the year, which would then take effect for the following payment year.

What to Watch For Next

Following the comment period, the home health industry will be watching closely for how CMS incorporates feedback into the final version of the Medicare home health rule, particularly around the durable medical equipment changes and any potential shift toward a home health-specific wage index. Agencies and industry groups preparing comments should act promptly given the relatively tight timeline before the August 31 deadline.