MM14304 - Home Health Prospective Payment System: CY 2026 Rate Update
For CY 2026, the HH market basket percentage increase is 3.2% per section 1895(b)(3)(B)(iii) of the Social Security Act. We reduce that increase by a productivity adjustment as mandated by section 3401 of the Affordable Care Act (Pub. L. 111–148). We estimate this reduction at 0.8 percentage points for CY 2026, making the final HH market basket update percentage 2.4% .
Section 1895(b)(3)(B)(v) of the Social Security Act requires a 2% decrease for the HH market basket update percentage for HHAs that don’t submit the quality data required by the Secretary. Therefore, for CY 2026, the final HH market basket update percentage increase for these HHAs is 0.4%.
Issued by: Centers for Medicare & Medicaid Services (CMS)
Issue Date: December 11, 2025
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