Home health providers will avoid significant Medicare pay cuts next year, after the Biden administration announced a net 0.7% increase in fees.
The $125 million increase announced Monday is a reprieve of sorts after the Centers for Medicare and Medicaid Services proposed anInstead, reductions will be phased in over two years, spreading out the pain for a health sector that's grappled with staffing shortages and rising costs.The adjustment stemmed from a new home health reimbursement system CMS launched in 2020 that pays agencies based on patient characteristics rather than how many hours of therapy were provided.
"We're at an impasse at this point," Bill Dombi, president of the National Association for Home Care & Hospice, told Axios. "Once [CMS] decided that they have to do what they have what they did under the law, nothing else comes into play other than their ability to do it." A lawsuit is a last resort, Dombi added. He hopes Congress can step in and change the law faster than the courts would.Sens. Susan Collins and Debbie Stabenow have introduced a bill to push off the cuts until 2026. But the legislation may not get taken up before the end of the year, and the bill doesn't get at the agency's root cause for the cuts.
Additionally, CMS still plans to claw back the extra $2 billion it paid to home health providers in 2020 and 2021 as a result of the new payment system. A roadmap for that could come in next year's rule.
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