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CMS Proposes Unprecedented Cuts Via New Home Health Payment Rule

08/24/2022 Dave Macke

The Centers for Medicare and Medicaid Services (CMS) have proposed a new payment rule for CY2023, which, if implemented, will devastate access to home health services, particularly for rural and medically underserved patients. The home health community is desperately urging Congress to stop these proposed Medicare cuts.

In June 2022, CMS proposed to permanently cut rates for Medicare home health services by an unprecedented -7.69% or $1.33 billion in 2023 alone. CMS intends to impose an additional $2 billion in cuts for 2024 in an attempt to claw back funds. These actions are a severe threat to the home healthcare system.

The Preserving Access to Home Health Act of 2022 (S. 4605 / H.R. 8581) would prevent proposed cuts to home health payment rates from taking effect prior to 2026. Any adjustment needed to ensure budget neutrality under the new home health payment system would still be made within the budget window. If CMS determined that payment increases were needed to achieve budget neutrality, prior to 2028, upward adjustments would be made to support access to care.

The following link provides more information on CMS’s proposed payment rule. Ask Congress to prevent home health cuts here. Don’t delay. Contact your legislators today.

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