(Alexandria, VA, and Washington, DC) – On May 8, the National Alliance for Care at Home (the Alliance) Home submitted a letter detailing recommendations for the Centers for Medicare & Medicaid Services’ (CMS) consideration for the upcoming CY 2027 Medicare Home Health Prospective Payment System Proposed Rule. Years of payment cuts in the face of rising labor and supply costs threaten to erode an already struggling home health benefit and the services that beneficiaries rely on for their care. The Alliance encourages CMS to consider these recommendations carefully so it can preserve this important benefit for Medicare and its beneficiaries now and in the future.
The letter notes that while the Alliance appreciates the consideration and resulting changes made in response to stakeholder comments for the Calendar Year (CY) 2026 Medicare Home Health Prospective Payment System Rate and Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Competitive Bidding Program Updates Final Rule, several methodological issues and confounding factors raised in the public comments in response to last year’s proposed rule remain and continue to result in inappropriate payment rate reduction.
“Given the unreliability of the data and CMS’ determinations around budget neutrality, the impact of localized fraud impacting CMS’ data and analysis, we urge CMS to eliminate all permanent and temporary adjustments determined and applied by the Agency to date in 2027,” said Jennifer Sheets, CEO of the Alliance, in the letter. “While CMS narrowly addressed some concerns related to its methodology submitted by the Alliance in the CY 2026 HH PPS final rule, it did not sufficiently respond to other issues raised in our comment letter.”
The urgency to protect access to home health cannot be overstated. Expanding access to home health care is essential to improving health outcomes, enhancing patient independence, and reducing healthcare costs. Research also shows that when patients are unable to access clinically appropriate home health services, hospital readmissions are 35% higher, mortality rates are 43% greater, emergency department utilization grows by 16%, and total spending is 5.4% more. Home health care also aligns with patient choice, with a 2025 poll revealing that 91% of voters believe it’s important that home health services be available when Medicare patients require extra medical support, and 70% of voters opposing Medicare cuts. CMS must protect this vital, preferred model of care.
The Alliance urges CMS to consider these recommendations as the rulemaking process continues, and will continue to engage with regulators, policymakers, and members regarding this important decision.
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About the National Alliance for Care at Home
The National Alliance for Care at Home (the Alliance) is the leading authority in advancing care in the home. We envision an America where everyone has access to the highest quality, person-centered healthcare wherever they call home. Through advocacy, education, and convening, we connect providers and stakeholders to strengthen care delivery across the home-based care continuum — spanning home care, home health, hospice, palliative care, and Medicaid home and community-based services. Learn more at www.AllianceForCareAtHome.org.
Press Contact
communications@allianceforcareathome.org
Hannah Kristan | 202-355-1647