Home Health Agencies Get $85 Million Medicare Pay Hike in 2025

Overall Medicare payments to home health agencies will increase by 0.5%, or $85 million, next year under a final rule released Friday.

The total amount reflects a 2025 payment increase of 2.7%, or $445 million, according to the rule (RIN 0938-AV28 ) from the Centers for Medicare & Medicaid Services. But that amount would be offset by an estimated 1.8% payment cut of $295 million as part of a “permanent behavior adjustment” based on the assumption that home health agencies altered their billing and coding activity to maximize reimbursements in previous years.

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