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CMS to slash $130 million in Medicare home health pay

November 1, 2016

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Home healthcare agencies will see a 0.7% drop in Medicare reimbursement in 2017, the final year of cuts meant to recoup previous overpayments. The finalized rates means Medicare would pay home health agencies $130 million less next year than in 2016.

The cut is smaller than the proposed 1%, or $180 million, suggested by the CMS earlier this year. The Affordable Care Act mandated the reduction to address Medicare overpayments for home health services dating back to 2000.

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