The Centers for Medicare & Medicaid Services (CMS) recently released the CY 2026 Home Health proposed rule on June 30, 2025, introducing some major changes that Home Health Agencies (HHAs) are now reviewing and preparing to comment on. This rule proposes the largest payment cut since the Home Health Agency Prospective Payment System (HHA PPS) began in CY 2000. CMS is suggesting a reimbursement cut of 6.4%, or $1.135 billion.

On July 1st, 2023 CMS began requiring home health agencies to document their utilization of telehealth services on their Medicare Fee-For-Service (FFS) claims. As finalized in the CY 2023 Home Health Payment System Rate Update, agencies are responsible to identify one of three services they provide using new Healthcare Common Procedure Coding System (HCPCS) codes. These codes are added as a separate visit line on the claim based on the date each service is provided. CMS notes in the rule that these services are for reporting only, since CMS does not reimburse for these services. The HCPCS codes are: