CMS mulls $375M pay cut to home health agencies next year
CMS issued a proposal Friday to cut reimbursements to home health providers by 2.2% next year, or an estimated $375 million less than 2023 levels. On June 30, 2023, the Centers for Medicare & Medicaid Services (CMS) proposed a 2.2% cut to Medicare home health payments in 2024. This would amount to a loss of $375 million for home health agencies. The proposed cut is due to a number of factors, including the implementation of the Patient-Driven Groupings Model (PDGM), which is a new payment system for home health services. The PDGM is designed to better align payments with the cost of providing home health services. However, some home health agencies have argued that the PDGM is not adequately compensating them for the services they provide. They have also said that the proposed cut will make it more difficult for them to provide quality care to Medicare beneficiaries. The CMS is currently accepting public comments on the proposed cut. The agency will make a final decision on the cut