Medicare Commission Suggests Payment Cuts for Profit-Generating Elder Care Providers

The Medicare Payment Advisory Commission, which advises Congress on Medicare policy, evaluated provider payments under traditional Medicare and proposed potential reductions for home health agencies and hospices. Their analysis, based on 2024 Medicare claims data, found that both home health agencies and hospices are generating substantial gross margins, with home health agencies exceeding 21%. This financial surplus highlights the need to reassess payment rates to balance cost efficiency with care provision to the elderly population. The recommendations are part of ongoing efforts to optimize Medicare spending and ensure sustainable reimbursement frameworks for providers serving elderly patients.