Proposed Payment Rule Could Trigger $18B Cumulative Cut to Medicare Home Health Reimbursement

CMS

The U.S. Centers for Medicare & Medicaid Services has not proposed a negative aggregate payment adjustment for home health agencies for the following year since 2018.

That stable Medicare-reimbursement landscape, in turn, has allowed home health operators to grow their businesses and test out new, innovative care models, while also investing in their workforce. This period of stability, however, is inching closer to a potential end, reports Home Health Care News.

The total impact of the 7.69% permanent adjustment to the Medicare home health program and PDGM from 2023 through 2032 would total $15.15 billion, according to the organizations. The remainder of the $18 billion comes from possible CMS clawbacks.

“You’re hearing loud and clear from the home health provider community that this is a real gut punch, and it will harm access to care for the Medicare population,” said Joanne Cunningham, CEO of the Partnership for Quality Home Healthcare. “The size and the nature of … these reductions, what they would do to the Medicare home health program, would be severe.” Read more.

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