October 31, 2023

Data Demonstrates State-by-State Impact of Medicare Cuts to Home Health

New data details the devastating projected impact to home health in all 50 states

The Partnership for Quality Home Healthcare recently released data showing the projected impact to Medicare Home Health agencies in all 50 states if the CY 2024 HH PPS Rule proposed by the Centers for Medicare & Medicaid Services (CMS) is finalized. The startling numbers are causing major concern within the home health community.

Specifically, the data detail the:

  • Gross impact of the proposed -9.36% cut to Medicare Home Health for CY 2024 alone
  • Estimated “clawback” cuts to the Medicare home health program
  • Estimated impact over 10 years for the under-valued market basket for CY 2021-2022
  • Percentage of home health agencies in each state forecasted with overall margins below zero after the 2024 cuts

The Partnership is using the data to advocate on Capitol Hill and show lawmakers the importance of passing legislation to stop these severe payment cuts and protect their constituents’ access to home health services. Some data highlights include:

  • Hawaii is hardest hit state, with a -4.8% impact on payment.
  • California is the state expected to see the worst gross impact in 2024 with its agencies losing -$151,259,535 as well as the highest estimated clawback cuts at -$716,863,409.
  • California and Texas home health agencies are projected to lose over $1 billion over 10 years for the under-valued market basket for CY 2021-2022.
  • Vermont is projected to see the highest percentage of home health agencies with overall margins below zero after the 2024 cuts with 66.7% of agencies having their margins fall below zero.

The startling numbers demonstrate the real risk of home health agencies limiting capacity or closing, and, ultimately, the severe limitation to access that Medicare beneficiaries will face when trying to receive short-term recovery and rehabilitation services in their homes.

To see the data from each state, click here.