News Headlines Article

CMS proposes $180 million pay cut for home health
Modern Healthcare

Home healthcare agencies may see a 1% drop in Medicare reimbursement in 2017, the final year of cuts meant to recoup previous overpayments.

The proposed rates—which would mean Medicare would pay home health agencies $180 million less next year than in 2016—were published the same day that the U.S. Supreme Court decided not to hear a case challenging a federal labor rule that home health providers say is harming their businesses.

The Affordable Care Act mandated the reduction to address Medicare overpayments for home health services dating back to 2000. The CMS cut payments by $260 million for 2016, $60 million for 2015 and $200 million for 2014.