CMS Finalizes 0.8% Home Health Payment Increase For 2024, Additional PDGM Cuts

On November 1, 2023, the U.S. Centers for Medicare & Medicaid Services (CMS) released its CY 2024 home health final payment rule. This rule includes an estimated 0.8% increase in home health payments for 2024, equivalent to $140 million compared to 2023 payments. However, the rule also involves sharp rate cuts, with CMS finalizing a permanent prospective adjustment of -2.890% to the CY 2024 home health payment rate, a reduction smaller than the proposed -5.1%. CMS maintains that home health agencies were overpaid by approximately $3.5 billion from 2020-2022 and continues to advocate for permanent, negative adjustments, which has sparked disagreement from industry organizations and advocates.