The National Association for Home Care and Hospice has filed a federal lawsuit against CMS and HHS challenging the validity of a change in Medicare home health payment that reduced rates by 3.9 percent in 2023, with more cuts expected in the coming years.
The group argues that Medicare is required to implement payment model changes in a budget-neutral manner rather than to "inflict rate cuts that have precipitated services limitations or access to care," according to a July 6 news release from the group representing 33,000 home care and hospice organizations.
The group said that since the new payment model began in 2020, over 500,000 fewer Medicare patients have accessed home health services.
The group is seeking a reversal of the rate adjustments in the 2023 rule and requiring Medicare to implement the budget neutrality mandate consistent with the law, according to the release.