The management group at Addus HomeCare Company (Nasdaq: ADUS) is monitoring a possible long-term win, predicting that the Medicaid 80/20 rule can be repealed.

As well as, Addus will proceed its development of delivering curiosity good points on the state degree, following a 12 months wherein it secured rate of interest hikes estimated to ship a $35 million increase to income, firm executives mentioned at the side of fourth-quarter 2025 earnings outcomes.

Whereas it’s nonetheless early within the 12 months, Addus management has acquired data indicating {that a} 4% to five% charge hike has handed the New Mexico state legislature and is awaiting the governor’s signature, Brian Poff, govt vp and chief monetary officer, mentioned throughout the firm’s earnings name on Tuesday. This charge would profit the corporate within the second half of 2026, he mentioned.

“New Mexico was a state that had thought of giving OB3 a pat on the again [One Big Beautiful Bill Act] and a number of the noise there, however we had been hopeful that they might deal with that once more this 12 months,” Poff mentioned.” So good to see that it seems like that is really coming by way of. ‘

Frisco, Texas-based Addus supplies private care, hospice and residential care companies. The corporate at present serves roughly 62,500 sufferers by way of 262 places in 23 states.

In Illinois, Poff reported, Gov. J.B. Pritzker’s administration crafted its price range and not using a charge enhance.

“However we level out that that is in keeping with the place he began final 12 months, and we did get one thing in direction of the tip,” Poff mentioned. “To not say that we’ll essentially do that this 12 months, however one thing that we’ll proceed to watch because the legislative session goes by way of the method.”

Addus expects different excellent news to come back in 2026, particularly the repeal of the 80/20 provision of the Medicaid entry rule. This rule, which was put in a weaker place by the inauguration of the second Trump administration, requires that 80% of Medicaid {dollars} spent on residence well being care companies be allotted to staff’ compensation.

Implementation of the repeal would take a number of years and won’t at present influence Addus’s monetary efficiency, Allison mentioned, however it will be an “encouraging” improvement for the corporate and the trade.

“Perceive that every thing we hear is at all times topic to vary,” Allison mentioned. “However sure, we have heard good issues. Our group has been working with our lobbyists and with CMS. We consider they’re within the technique of these guidelines and making some modifications. We had indications that the timing can be sooner moderately than later. However once more, I wish to warning, this can be a rule that hasn’t gone into impact for plenty of years, so there is no such immediacy to it.”

Within the fourth quarter, Addus noticed whole companies income enhance to $371.1 million, a rise of 25.6% 12 months over 12 months. Complete full-year income was roughly $1.4 billion – up 23.2% 12 months over 12 months.

The corporate cited its private care enterprise as the important thing driver of its development, with 76.6% of fourth-quarter income coming from this phase. Addus strengthened its private care enterprise with the acquisition of Del Cielo Residence Care Companies in October 2025. The acquisition made Texas the corporate’s second-largest private care market.

The corporate’s know-how efforts are additionally experiencing constructive momentum. The corporate launched a cell app known as Addus Join within the New Mexico market in 2025. The app permits caregivers to view data and join just about with their help groups. The app immediately contributed to Addus’ service charge, which remained within the prime eightieth percentile all year long, management mentioned on the earnings name.

Addus plans to deploy the app in Texas within the first quarter of 20206 and full the launch by the tip of the second or early third quarter.

“We consider our larger alternative to seize some momentum can be in that Texas market simply due to a number of the market dynamics and the best way a number of the EVV [electronic visit verification] is being filed in Texas versus in New Mexico or in Illinois,” Heather Dixon, the corporate’s Chief Working Officer, mentioned on the decision. “So we like what we’re seeing, and we’re nonetheless carrying that momentum ahead to roll it out additional.”