(Alexandria, VA and Washington, DC) — The National Alliance for Care at Home (the Alliance) issued the following statement today in response to the introduction of the Home Health Stabilization Act of 2025. This bipartisan legislation, introduced by Representatives Kevin Hern (R-OK) and Terri Sewell (D-AL), would protect home health care by pausing the devastating payment cuts proposed in the Centers for Medicare & Medicaid Services’ (CMS) CY 2026 Home Health Prospective Payment System proposed rule.
Home health is one of the most preferred and cost-effective benefits of the Medicare program. Beneficiaries and their families overwhelmingly want to receive care in the comfort and dignity of their own home whenever possible. Care at home is also less expensive for Medicare and taxpayers when compared to prolonged or repeat hospitalizations and facility-based care.
Congress enacted legislation in 2018 to modernize and strengthen the home health benefit. This reform—intended by Congress to be budget neutral—has become a way for CMS to implement a series of massive cuts that have harmed access to care and threaten to increase Medicare costs. These cuts have led to delays in care, fewer patients receiving needed services, and increased patient safety risks, especially in rural and underserved communities. When beneficiaries cannot access home health following hospitalization, mortality rates are 43% higher, hospital readmission rates are 36% higher, and total 90-day Medicare spending is 5.4% higher. As home health agencies lose capacity, hospitals lose their ability to discharge patients to home health, forcing them to board patients ready for discharge, driving up hospital costs, and impacting the hospital’s ability to admit new patients. Issues for rural hospitals are especially acute when there are difficulties discharging patients to post-acute care.
“The 2026 home health payment proposal is the most egregious yet, using an approach rife with issues to impose a 9% cut, amounting to $1.135 billion in reduced home health payments next year. CMS must reverse course and correct its calculations to reflect clear and objective feedback already provided by the home health community. CMS should focus on addressing localized fraud and abuse that distorts the payment system and undermines legitimate patient care,” said Alliance CEO Dr. Steve Landers.
“The agency has the full authority to fix these errors, and Congress strongly urges CMS to act. But given what’s at stake for Medicare beneficiaries and the overall function of the Medicare program, Congress cannot stand still. The Alliance celebrates the exceptional leadership of Representatives Kevin Hern (R-OK) and Terri Sewell (D-AL) who today introduced the Home Health Stabilization Act of 2025, bipartisan legislation that would halt home health cuts in 2026 and 2027 and provide time for CMS and Congress to work with stakeholders to correct methodological errors, combat fraud, and strengthen access to home health at this critical moment for our health system,” Landers continued.
“Home health is a lifesaver for millions of seniors and their loved ones, especially in rural states like Oklahoma, where hospitals and nursing facilities may be hours away,” said Rep. Hern. “Slashing home health payments not only undermines access to this critical benefit, but it also drives up overall Medicare costs by forcing patients into more expensive care settings. This bill ensures seniors can get the care they need at home, while protecting taxpayers from wasteful spending.”
“Home health services are a lifeline for so many Alabama seniors and people with disabilities, allowing patients to receive the treatment they need in the comfort of their own homes,” said Rep. Sewell. “The impending cuts to the Medicare home health program will leave lasting negative impacts on patients and their families. It is imperative to prevent such cuts from taking effect, which is why I am proud to sponsor the Home Health Stabilization Act of 2025.”
The Alliance urges Congress to swiftly pass this vital legislation.
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About the National Alliance for Care at Home
The National Alliance for Care at Home (the Alliance) is the leading authority in transforming care in the home. As an inclusive thought leader, advocate, educator, and convener, we serve as the unifying voice for providers and recipients of home care, home health, hospice, palliative care, and Medicaid home and community-based services throughout all stages of life. Learn more at www.AllianceForCareAtHome.org.
Press Contact
communications@allianceforcareathome.org
Elyssa Katz | 571-281-0220
