Private Duty Should Care About CMS Rate Cuts

  • GO HERE to tell your members of Congress to support this critical legislation!
  • Big win for NAHC Advocacy & home health providers & patients!

In June the Centers for Medicare & Medicaid Services (CMS) released their proposed rule for home health services for CY2023. As part of their proposal they called for a 7.69 percent reduction to the base payment rate in order to meet a budget neutrality requirement as part of the transition to the Patient Driven Groupings Model (PDGM). In the Balanced Budget Act of 2018 Congress set parameters for the creation of PDGM with a 30-day payment episode, removal of therapy utilization in payment determinations, and a new case-mix methodology.

That large of a payment reduction would negatively impact all provider types, as seniors would ultimately have less access to care in the home.

“We estimate that 44 percent of all home health agencies would operate at a financial loss next year of the 7.69 percent rate cut takes effect, triggering a loss a care access for the millions of people relying on home health care,” said NAHC President William A. Dombi.

“This legislation should secure continued access to care,” added Dombi. “It will also provide an extended opportunity for CMS to rethink its approach to the budget neutrality adjustment. We firmly believe that CMS has much better options to consider that do not devastate the care that millions depend on.”

The Preserving Access to Home Health Act of 2022, S. 4605/H.R. 8581, introduced in the Senate and House of Representatives in the last week of July, would freeze CMS’ proposed 7.69 percent payment rate cut for CY2023. The swift movement of this legislation is a direct result of NAHC’s advocacy efforts on behalf of the entire industry and warrants attention from the private home care industry as well.

We ask every provider, regardless of service type, to urge your Senators to sign on to it. You can send a pre-drafted message by clicking here, though calls and/or personal messages are best.

Please reach out to NAHC with any questions, comments or thoughts.

Thank you for your assistance in this effort!