PRESS RELEASE | June 29, 2022

LeadingAge Statement on CMS Home Health Prospective Payment System Rate Update

Contact: Lisa Sanders

lsanders@leadingage.org 202-508-9407

The proposed $810 million annual Medicare payment reductions, considered alongside recent payment proposals for nursing homes and hospice providers, stand in stark contrast to the Biden Administration’s stance on the importance of long-term care. How can the lofty goals of ensuring access to quality care and promoting equity be achieved when the financial equation does not add up?

June 29, 2022 Washington, DC —  A “chilling message” is being sent by the Biden Administration to the older adults and their families across American seeking access to long-term care services and supports, says Katie Smith Sloan, president and CEO of LeadingAge, the only association representing providers serving older adults in Medicare and Medicaid certified settings across the “care continuum,”  including nursing homes, home health and home care, hospice, and more. 

Commenting on the impact of the proposed payment rule for home health providers, released June 17, 2022 by the Centers for Medicare & Medicaid Services (CMS), which comes on the heels of recommended changes to reimbursements for nursing homes and hospices, Sloan expressed deep concerns in a letter to Health & Human Services secretary Xavier Becerra – both about the devastating impact of the possible major funding cuts on older adults who rely on home health services, as well as the contradictions between the Biden Administration’s longstanding public declarations of support for older adults’ ability to access quality home health and other long-term care services and its recent actions on payment proposals.

“As the only association that represents providers across aging services settings, we take a holistic view of the potential impact of these proposed PPS rules. They do not bode well for older people. The overall impact of CMS’ proposals is the potential for devastation across the continuum of care,” she said. Combined with current workforce and inflationary pressures, the payment reductions would lead to waves of closures and the inability of those providers who remain to serve new patients and residents. “The fragile long-term care ecosystem could simply cease to exist,” she added. “Especially our mission-driven, high-quality members.”

Sloan poses a simple question to Secretary Becerra: “How can lofty goals be achieved when the financial equation does not add up?,” pointing out how the impact of CMS’s proposals stand in stark contrast to the Biden Administration’s stance on the importance of long term care.

During his presidential campaign and after, President Biden has addressed the needs of older adults, releasing a plan on 21st century caregiving and the impact on workforce, and calling for a major investment in home and community-based services. LeadingAge has been vocal in its support of those actions – and thrilled to see a focus on older adults, particularly in light of COVID-19’s disproportionate toll on older adults. But, as Sloan observes, “cutting funding for services makes it impossible” to turn that historic support and bold vision into reality. 

About LeadingAge:

We represent more than 5,000 nonprofit aging services providers and other mission-minded organizations that touch millions of lives every day. Alongside our members and 38 state partners, we use applied research, advocacy, education, and community-building to make America a better place to grow old. Our membership, which now includes the providers of the Visiting Nurse Associations of America, encompasses the continuum of services for people as they age, including those with disabilities. We bring together the most inventive minds in the field to lead and innovate solutions that support older adults wherever they call home. For more information visit leadingage.org.