The Centers for Medicare & Medicaid Services (CMS) recently announced a proposal to implement a more than 4% cut to home health Medicare payments in 2025. CMS projects that Medicare payments to home health agencies will drop by 1.7% overall in the calendar year 2025. This reduction translates to an estimated decrease of about $280 million compared to the payment levels in 2024.
Healthcare advocates are raising alarm bells, emphasizing the detrimental effects that such a reduction in funding could have on patient care. In response to the proposal, advocates for home health services are urging policymakers to reconsider these cuts and seek alternative solutions to address budgetary concerns.