CMS 2025 Home Health Agency Rates


On Jun. 26, CMS issued proposal to update Medicare payments, rates.


  • CMS issued 2025 home health prospective payment system (HH PPS) proposed rule.
  • Would update Medicare payment policies and rates for home health agencies (HHAs).
  • Changes can support timely admission to home health services, has demonstrated improvements for patient outcomes and reducing risk of hospital readmissions.
  • Proposed Rule
  • CMS proposal would set forth routine updates to Medicare home health payment rates.
  • For disposable negative pressure wound therapy (dNPWT) devices, and intravenous immune globulin (IVIG) items and services payment rate for the calendar year 2025.
  • Proposed changes to Home Health Quality Reporting Program (HH QRP) requirements.
  • In addition, the proposed rule provides an update on potential approaches for integrating health equity in Expanded Health Value Based Purchasing (HHVBP) Model.
  • New standard for acceptance to service policy in HH conditions of participation (CoPs).
  • Also, solicited input on permitting rehabilitative therapists to conduct the initial and comprehensive assessment and the factors that may influence patient referral, intake.
  • Lastly, it proposed updates to provider and supplier enrollment requirements and changes to the long-term care reporting requirements for acute respiratory illnesses.
  • Consultation
  • Comments due no later than 5 p.m. EDT on Aug. 26, 2024
  • Jul. 2024 CMS Fed Reg Proposal
  • On Jul. 3, 2024, CMS published proposal in federal register, comments Aug. 26, 2024.
  • Nov. 2024 CMS Final Rule
  • On Nov. 1, 2024, CMS published final rule on home health rates, effective Jan. 1, 2025
  • Finalized permanent behavior adjustment to -1.975% in response to comments.
  • Adjustment will continue to satisfy statutory requirements to offset increase, decrease
  • Updated crosswalk to address issue by mapping OASIS-E items back to the OASIS-D.
  • Also updates to SN, PT, SLP LUPA add-on factors to accurately reflect practices, costs.
  • May consider adding existing Medicare Spending per Beneficiary measure in future.
  • Will share summaries of comments received on HHVBP with technical expert panel.
  • Nov. 7, 2024 CMS Fed Reg Final Rule
  • On Nov. 7, 2024, CMS published final rule in federal register, effective Jan. 1, 2025.

Regulators CMS; HHS
Entity Types Ins
Reference 89 FR 88354, 11/7/2024; PR, RF CMS-1803-F, 11/1/2024; 89 FR 55312, 7/3/2024; Info, RF CMS-1803-P, 6/26/2024; RIN 0938-AV28;
Functions Claims/Accelerated Benefits; Compliance; Financial; Legal; Reporting
Countries United States of America
Category
State
Products Insurance; Insurance-Health; Medicare
Regions Am
Rule Type Final
Rule Date 6/26/2024
Effective Date 1/1/2025
Rule Id 217493
Linked to N/A
Reg. Last Update 11/7/2024
Report Section US Insurance

Last substantive update on 11/11/2024