CMS Projects Cuts in Medicare Home Care Payments

In July 2017, CMS issued a new proposed prospective payment system (PPS) rate update for 2018. The new model could result in a $950 million Medicare payment cut for home health providers in calendar year 2019 if it is implemented in a non-budget neutral manner, CMS estimates. It could reduce payments by $480 million if implemented in a partially budget-neutral manner, according to the agency. Read the unpublished draft proposal here.

This proposal faces opposition by home health providers, who are concerned that Affordable Care Act directives for high-risk beneficiaries to receive access to home health services would result in disproportionate cuts to provide the care if the payments are implemented as drafted. Read more about their concerns here.