Final 2026 Home Health Rule: CMS Reduces Impact of PDGM Cut

In this review: Medicare and Medicaid Programs: Calendar Year 2026 Home Health Prospective Payment System Rate Update, etc.

Effective date: Jan. 1, 2026

CMS fact sheet

The Big Picture

In its final 2026 payment rule, the Centers for Medicare & Medicaid Services delivers a cut to home health agency reimbursement due to implementation of the Patient-Driven Groupings Model. The result is a 1.3% (or $220 million) decrease from 2025 levels, a significant difference from the proposed 6.4% reduction. This will be the first year that home health agencies see cuts as a result of the temporary behavioral adjustment.

In its comments on the proposed rule, APTA argued against significant cuts that could negatively impact patient access to PT services. APTA also created a template letter for members to share their feedback with CMS.

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