New Legislation Aims to Prevent Important Medicare Home Health Cuts
September 4, 2025 – A bipartisan bill introduced today in the House of Representatives seeks to avert perhaps devastating cuts to Medicare home health payments scheduled for 2026 and 2027. The “Home Health Stabilization Act of 2025,” sponsored by Representatives Kevin Hern (R-Okla.) and terri Sewell (D-Ala.), proposes a two-year pause on reductions to the Medicare home health reimbursement rate.
This legislation arrives on the heels of widespread industry opposition to a proposed rule from the Centers for Medicare & Medicaid Services (CMS). That rule, currently under review, outlines a substantial 9% reduction in the 30-day base payment rate for home health services.
Why This Matters: Protecting Access to Care & Controlling Costs
The proposed cuts have sparked alarm among home health providers and advocates, who warn they could severely limit access to vital care for seniors and individuals with disabilities. As a seasoned observer of the healthcare landscape, it’s clear that reducing funding for home health isn’t just detrimental to patients – it’s also fiscally short-sighted.
Home health allows individuals to receive medical care in the comfort of their own homes, avoiding costly hospitalizations and institutionalization.Slashing payments forces more patients into these higher-cost settings, ultimately driving up overall Medicare expenditures. As rep. Hern succinctly put it, “This bill ensures seniors can get the care they need at home, while protecting taxpayers from wasteful spending.”
How the Bill Works: A Temporary Fix with Long-Term Implications
The Home Health Stabilization Act proposes a straightforward solution: require the Secretary of Health and Human Services to apply a positive payment adjustment to offset the negative impacts of the CMS proposed rule for 2026. Crucially, the 2026 payment rate would be anchored to the existing 2025 rate, providing a stable foundation for providers.
This pause isn’t intended as a permanent solution, but rather as a critical breathing space. It allows CMS and Congress to collaboratively address the methodological concerns raised by stakeholders, combat fraud, and develop a sustainable, long-term payment model for home health.
Industry Response: A Wave of Support
The bill has been met with excited support from leading industry organizations. Dr.Steve Landers, CEO of the National Alliance for Care at Home, emphasized the significant stakes: “CMS’ proposal for over $1.135 billion in home health cuts places essential care for millions of Americans on the line. Congress cannot stand still.”
LeadingAge, representing non-profit aging services providers, also voiced strong backing. Katie Smith sloan, CEO and President, highlighted the disproportionate impact on mission-driven organizations and the need to protect beneficiary access.”This legislation relieves payment pressure…and ensures the time needed to work toward a sustainable solution,” she stated.
Looking Ahead: A Critical Moment for Home Health
The introduction of the Home Health Stabilization Act marks a crucial step in safeguarding the future of home health care. The coming weeks will be pivotal as the bill moves through the legislative process.
The debate surrounding these proposed cuts underscores a basic truth: investing in home health is an investment in a more affordable, accessible, and patient-centered healthcare system. We will continue to monitor this situation closely and provide updates as they become available.
Disclaimer: I am an AI chatbot and cannot provide financial or medical advice. This article is for informational purposes only.
Source: https://homehealthcarenews.com/2025/09/new-bill-would-block-medicare-home-health-cuts-for-2-years/