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.