The U.S. Centers for Medicare & Medicaid Services (CMS) has proposed a 2.2% decrease in Medicare payments to home health providers for 2024. This reduction would amount to an estimated $375 million less compared to 2023 levels. The draft of the proposed payment rule is expected to be officially published on July 10.

The $375 million decrease reflects the effects of the Patient-Driven Groupings Model (PDGM) permanent behavioral rate adjustment of -5.1% ($870 million), a 2.7% payment update ($460 million), and an estimated 0.2% increase ($35 million) related to the effect of an updated fixed-dollar loss ratio.

• CMS Proposes 2.2% Cut in Home Health Payments for CY 2024 (McKnight’s Home Care, 6/30/23)
• CMS Proposes 2.2% Decrease to Home Health Provider Medicare Payments in 2024 (Home Health Care News, 6/30/23)

Home health industry leaders strongly disagree with CMS's methodology and warn of adverse effects on patient care and provider viability. In response, the Preserving Access to Home Health Act of 2023 (S.2137) has been introduced in the U.S. Senate to limit CMS's rate-setting authority and involve Medicare Advantage rates in the decision-making process. Advocates hope Congress will take action to mitigate the harm caused by the proposed payment cuts. Click here to send an email to your Senators encouraging their support for this vital legislation.

Please stay tuned for a full analysis following the publication of the official proposal.