Medicare Home Health Reimbursement Cut Looms Amid Shutdown Delay

The government shutdown has delayed the release of the 2026 Medicare home health final rule, creating uncertainty for home health providers.

The proposed rule includes a potential 9% cut to reimbursement rates, causing concern across the industry due to the significant financial impact. Some providers, like Empath Health, are considering drastic measures including scaling back or exiting home-based care if the cuts proceed.

Empath Health, a large not-for-profit provider, highlights the operational losses already faced in home health care, emphasizing the urgent need for clarity. Despite this, there remains cautious optimism that advocacy and industry efforts may influence policymakers before the final rule is set. The extensive public feedback on the proposed rule demonstrates widespread stakeholder engagement on this issue.

Other providers are preparing to absorb the potential cuts while maintaining business continuity. The Pennant Group has implemented advocacy campaigns and operational adjustments aimed at mitigating the effects of the rate reduction. Their resilience is bolstered by a diversified model and recent expansions through acquisitions, although they regard the direction as unfavorable.

Similarly, HealthView Home Healthcare Services has restructured operations to improve efficiency in anticipation of reimbursement changes. However, the continued policy fluidity over recent years has complicated strategic planning for many providers in the home health sector.

Industry advocacy groups like the National Alliance for Care at Home have mobilized proactively, engaging Congress to introduce the Home Health Stabilization Act of 2025. This bipartisan legislation intends to delay cuts if the final rule confirms the proposed reductions, providing time to revise payment methodologies. The coordinated response underscores the critical nature of the reimbursement issue for long-term sustainability of home health services.