The American Hospital Association publicly expressed concerns over changes to the calendar year 2025 Home Health prospective payment system proposed by the Centers for Medicare and Medicaid Services (CMS).
In June, CMS proposed a new rule that would decrease Medicare payments to Home Health Agencies (HHAs) in CY 2025 in the aggregate by 1.7%, or $280 million, compared to CY 2024, according to an agency news release.
The AHA, which outlined its concerns in an electronic letter sent to CMS administrator Chiquita Brooks-LaSure, opposes the proposed cuts due to concerns over access to home healthcare and potential disruptions to care.
“The AHA is very concerned about ongoing access challenges for beneficiaries needing HH care, and the potential for CMS’ proposed updates to lead to further disruption,” the association wrote to CMS.
According to the AHA:
Home Health agencies are vital to Medicare beneficiaries’ recoveries, and they partner with acute care and other hospitals to ensure patients can receive the right care in the most appropriate setting. Hospitals rely on HH agencies for safe and timely discharge of patients and to avoid extended hospital stays. We already see the strain on HH operations — and other post-acute care providers — due to financial challenges, creating ripple effects throughout the continuum of care, including for acute and post-acute hospitals. Despite this, CMS proposes inadequate HH agency payment rate updates and further erroneous behavioral adjustments.Â
The association asked CMS to reconsider proposed payment reductions.
“We urge the agency to reconsider these proposals and take steps to ensure HH agencies receive payment updates that match their financial reality and enable them to continue to provide high-quality care to Medicare beneficiaries,” the organization wrote.
The American Hospital Association represents nearly 5,000 member hospitals, health systems and other health care organizations, including approximately 1,000 hospital-based home health (HH) agencies, and our clinician partners — more than 270,000 affiliated physicians, 2 million nurses and other caregivers — and the 43,000 health care leaders who belong to our professional membership groups.
Read more about the AHA position statement here.
