Reps. Kevin Hern (R-OK) and Terri Sewell (D-AL) have introduced the Home Health Stabilization Act of 2025, a bill designed to halt the 9% cut to Medicare home health payments proposed by the Centers for Medicare & Medicaid Services (CMS) for 2026 and 2027. The pause would give CMS and Congress time to address methodological issues in the payment model while exploring reforms that preserve access and combat fraud.

Impact in Massachusetts

• Access to care: The proposed $1.135 billion national cut would significantly affect home health agencies across the Commonwealth, many of which are already contending with workforce shortages and rising operating costs.
• Hospital flow: Reduced home health capacity means hospitals are forced to keep patients longer, delaying admissions and driving up costs. This challenge is especially pronounced for rural and community hospitals.
• Patient outcomes: National data show that when Medicare beneficiaries cannot access timely home health care, mortality rises by 43%, hospital readmissions by 36%, and overall Medicare spending by 5.4%.

Why it matters
Home health remains one of Medicare’s most cost-effective and preferred benefits, allowing patients to recover in their homes rather than in higher-cost facilities. Massachusetts providers have built strong capacity in this area, but the proposed cuts could reduce access, increase patient safety risks, and strain the entire health system.

Congressional debate on the legislation is expected this fall. If enacted, the bill would pause the cuts for two years, giving stakeholders time to collaborate on solutions that strengthen access to care while addressing program integrity.