CMS boosts payment for home health agencies, ESRD providers

CMS recently finalized two separate rules that will increase payments for home health agencies (HHAs) and end-stage renal disease (ESRD) providers.

Introduction to Medicare payment reform

CMS reverses proposed HHA payment cuts

In June, CMS proposed a 2.2% payment cut to HHA providers for 2024, which would have accounted for a -5.1% adjustment related to the Patient-Driven Groupings Model, as well as other factors. However, the agency reversed this decision in its final rule, instead increasing payments by 0.8%.

The 0.8% increase is based on a 3.3% market basket update, reduced by a 0.3% productivity adjustment. The change is expected to...