November 1, 2023 Washington, DC — Statement from Katie Smith Sloan, president and CEO, LeadingAge, the association of nonprofit providers of aging services, including home health care and hospice, on the CY 2024 Home Health Prospective Payment System (HH PPS) Rate Update final rule:

“A nearly 3.0% permanent cut to Medicare payment rates will be devastating for our nonprofit, mission-driven members, who are committed to serving all beneficiaries, including the poorest and most underserved. The impact of these reductions will be profound.

“Coming on the heels of last year’s 3.9% permanent rate reduction, the actions taken by the Centers for Medicare and Medicaid Services (CMS) today further threaten access at a time when demand for care at home is increasing. 

“While we recognize that CMS did not cut as much as they proposed, future payment reductions and clawbacks are a certainty under the agency’s interpretations of its current statutory obligations. 

“Providers are already navigating well-documented challenges to recruit, hire and retain staff in a very tight labor market. Faced with additional cuts in this environment, our mission-driven providers will be forced to limit their caseloads even further in order to ensure quality care. And the current struggles of older adults and their families to access care will worsen. 

“We will continue to advocate for fair and equitable payment policy to ensure continued access to care for older adults and families – now and in the future.”