CMS proposes payment decrease of $810M for home health in 2023

The Centers for Medicare & Medicaid Services is proposing a 2.9% home health payment update ($560 million) for calendar year 2023. This update is expected to lead to a 4.2% decrease ($810 million) in Medicare payments, the agency said Friday.

The update equates to an estimated 6.9% decrease that reflects the “effects of the proposed prospective, permanent behavioral assumption adjustment of -7.69% ($1.33 billion decrease), and an estimated 0.2% decrease that reflects the effects of a proposed update to the fixed-dollar loss ratio (FDL) used in determining outlier payments ($40 million decrease),” CMS said.

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