Underpressure to contain costs, Medicare regulations governing home health agencies have been changing. Agencies must either stay abreast of these changes or face the reality of increasing Medicare denials. These revised regulations affect the provision of rehabilitation services to homebound individuals. The frequency and duration of rehabilitation services have been influenced both by the intensity of therapy received prior to discharge and by the acute or chronic nature of the disease or injury. But functional limitations, not the diagnosis or prior exposure to inpatient rehabilitation, should be the basis for eligibility of rehabilitation services. It is now a challenging task to provide individuals with the necessary rehabilitation services while complying with Medicare regulations. Hence, the purpose of this article is to shed light on current regulations which have an impact on the home delivery of rehabilitation services, and to encourage healthcare professionals to work in concert with clients and their families to make changes in the system.