The Centers for Medicare & Medicaid Services (CMS) released its CY 2027 home health proposed payment rule on Wednesday.

The rule proposes an aggregate payment increase of 2.4%, or $420 million, representing a significant change from years past, which included aggregate cuts to Medicare home health payments.

The increase is based on a proposed 2.1% payment update, representing $370 million, and a 0.3% increase related to the Fixed Dollar Loss (FDL) ratio.

CMS also did not propose a new permanent adjustment to the CY 2027 30-day base payment rate, but said that the agency would continue to analyze data through CY 2026 claims to determine if any additional permanent adjusts to account for the impact of the Patient-Driven Groupings Model (PDGM).

“This adjustment accounts for differences between assumed behavior changes and actual behavior changes on estimated aggregate expenditures because of the CY 2020 implementation of the PDGM and the change to a 30-day unit of payment,” the CMS fact sheet read.

While not proposing a new permanent adjustment, CMS proposed a temporary adjustment of -3% to the 2027 national, standardized payment rate.

“This proposal would continue recoupment of the retrospective overpayments made for CYs 2020 through 2025 through “one or more” temporary adjustments,” the fact sheet read. “We believe that continuing to incrementally adjust the base payment rate to account for the calculated temporary dollar amount to date may help reduce the need for a large reduction in future years.”

This story is developing. Check back for more information as it is available.