Medicare Rate Cuts to Reduce Home Health Reimbursement 4.2% in CY 2023
The proposed CMS Home Health Prospective Payment System Rate Update was posted to the Federal Register on June 23rd, a bit earlier in the annual rule-making cycle than the past several years. As part of the overall reimbursement cuts, CMS is proposing a 7.69% rate cut to reflect their calculations on behavioral adjustments. These adjustments are intended to account for the actual vs assumed behavior changes on aggregate expenditures due to the switch from HH PPS to PDGM. Keep in mind this is a prospective rate cut starting in CY 2023, and does not address the overpayments from CY 2020 and CY 2021. CMS has requested comments on how to recoup these overpayments.