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Homecare Homebase and CMS CY 2026 Home Health Final Rule Insights

On December 10, 2025, Homecare Homebase (HCHB), a leader in technology solutions for home-based care, shared crucial insights and compliance updates following the Centers for Medicare & Medicaid Services (CMS) Calendar Year 2026 Home Health Prospective Payment System Final Rule. This announcement is significant for home health agencies as it reflects the results of an extensive advocacy campaign within the industry.

Key Updates from the CY 2026 Final Rule

The final rule showcases major advancements due to the collaborative efforts of various stakeholders in the home health sector. However, the overall net reduction of 1.3% in payments presents ongoing challenges for agencies already under financial pressure. Here are some notable updates from the final rule that take effect on January 1, 2026:

Financial Updates:

• - Overall Medicare Home Health Payments: There's a projected reduction of $220 million in payments, evidencing the 1.3% net decrease.
• - Payment Updates: An adjustment of 2.4% is introduced, alongside a 0.9% permanent adjustment and a temporary adjustment of 2.7% impacting overall payments.
• - Updated Payment Rate: The new national standardized 30-day payment rate is set at $2,038.22.
• - Visit Payment Adjustments: Changes will be applied to payment amounts, low utilization adjustments, and other operational metrics affecting agencies.

Operational Updates:

• - Conditions of Participation: CMS has made it clear that OASIS submissions are mandatory for all patients receiving skilled services, regardless of the payer.
• - Quality Reporting Program (QRP): Suggestions for making the data-submission deadlines shorter were summarized, including some revisions to the quality measures.
• - HHCAHPS Survey: The star rating methodology has undergone updates alongside new questions and changes in measure weights.
• - Provider Enrollment: There are now broader grounds for denial and revocation of enrollment requests.
• - Reconsideration Extensions: Agencies can request extensions under extraordinary circumstances that impede timely submissions for the Quality Reporting Program.

Ongoing Challenges and Industry Response

Despite the positive changes introduced by the final rule, Homecare Homebase emphasized the significant challenges still faced by agencies. Rising labor costs and administrative burdens continue to present hurdles, especially in a rapidly evolving payer landscape influenced by Medicare Advantage and value-based care.

Homecare Homebase leaders, including President Luke Rutledge, claim that this final rule is a testament to the power of unified advocacy, which has led to CMS acknowledging the complexities of providing care at home. Rutledge stated, "This final rule shows that consistent, unified advocacy truly makes an impact. While we see progress, more work remains to protect access and ensure stability."

CRO Hannah Pearson added that the pressure on home health providers is mounting and highlighted the need for sustained policy improvements to maintain patient access across both Medicare fee-for-service and Medicare Advantage.

Product Updates and Compliance Efforts

With the announcement's publication, Homecare Homebase has initiated product updates to maintain compliance with the upcoming changes. Their analytics team has updated the Home Health Impact Model, which will help agencies assess how the new policies will reshape their operations based on their unique claims data.

As a provider with a significant market share in the home health industry, HCHB has access to valuable national trends and insights, combining data analytics with regulatory expertise to help agencies navigate these policy transitions. The company's commitment extends to promoting long-term stability and innovative practices in home-based care.

For further information on Homecare Homebase's advancements and strategies, interested parties can visit hchb.com.

About Homecare Homebase

Founded in 1999 by industry veterans, Homecare Homebase SM is dedicated to facilitating exceptional home-based care through cloud-based technology solutions and administrative services. With over 300,000 users providing care to nearly one million patients daily, HCHB is at the forefront of streamlining operations and enhancing clinical outcomes within the home care sector.

About Hearst Health

Hearst Health is committed to enhancing the quality, safety, and efficiency of healthcare across organizations, manufacturing its legacy from over four decades of innovation in the healthcare sector. The collaboration with various companies under its wing aims to improve overall care quality and patient journeys.