Traditional MedicareReimbursementMedium impact
2025-12-03 - 2026 Medicare Participation Announcement
Medicare/CMS·Payment
Effective date
Jan 1, 2026
We identified it
Jan 12, 2026
Summary
CMS announced the 2026 Medicare Participation updates with key focus on reducing administrative burden and improving program integrity. Home Health agencies will see an aggregate 1.3% decrease ($220 million) in Medicare payments for 2026 due to various adjustment factors despite a 2.4% base rate increase.
Action Required
By January 1, 2026: Billing team should review the full CMS participation letter at https://www.cms.gov/medicare-participation for detailed guidance on administrative burden reduction initiatives. Home Health billing teams must prepare for 1.3% aggregate payment decrease and review the final Home Health PPS rule for specific rate changes and outlier payment adjustments.