CMS’ surprise overall payment increase for home health agencies wasn’t enough to address the concern from industry leaders about the continued payment cuts providers are facing.
Home health advocates note the national rate increase of 0.5% is far from enough to address rising costs, and the payment cut relief offered by CMS this year just pushes the rest of the payment cut down the road for future claw backs and deeper payment cuts.
“Although CMS has spread out the baseline cuts, the rule nonetheless finalizes a -1.975% permanent projected adjustment,” says LeadingAge CEO Katie Smith Sloan. “This brings us to a nearly 9% permanent cut to home health payment since 2023. At the same time, a $4.5 billion temporary adjustment looms.”
Attention now turns to Congress to act in the next two months to support home health agencies, says National Alliance for Care at Home’s CEO Steven Landers.
“Home health has long demonstrated its value as a cost-effective alternative to hospitalization and institutional care and an essential service to over 3 million highly vulnerable Medicare beneficiaries,” Landers notes in a statement. “Legislation is pending that would end these cuts. We urge the Congress to enact legislation that will stabilize home health services before the end of the year.”