Home Health Stabilization Act Introduced to Pause Medicare Cuts

WASHINGTON—Representatives Kevin Hern (OK-01) and Terri Sewell (AL-07) introduced the Home Health Stabilization Act of 2025 (HR 7027). The legislation aims to ensure patients have access to rehabilitative care by pausing the payment cuts proposed in the Centers for Medicare & Medicaid Services’ (CMS) Calendar Year 2026 Home Health Prospective Payment System proposed rule. The legislation also looks to create a more sustainable payment system for Medicare Home Health Agencies (HHAs).

“Home health is a lifesaver for millions of seniors and their loved ones, especially in rural states like Oklahoma, where hospitals and nursing facilities may be hours away,” said Hern. “Slashing home health payments not only undermines access to this critical benefit, but it also drives up overall Medicare costs by forcing patients into more expensive care settings. This bill ensures seniors can get the care they need at home, while protecting taxpayers from wasteful spending.” 

In a press release, Hern said HHAs have suffered multiple setbacks in recent years, putting a strain on the nurses, therapists and home health aides who serve beneficiaries. Since 2020, over 1,000 home health agencies have closed, and nearly one-third of patients referred to home health care from hospitals are unable to receive services. According to Hern, this legislation pauses the funding reductions that have been happening over the last several years to give Congress and the industry time to develop a better, more sustainable payment system.

“Home health services are a lifeline for so many Alabama seniors and people with disabilities, allowing patients to receive the treatment they need in the comfort of their own homes,” said Sewell. “The impending cuts to the Medicare home health program will leave lasting negative impacts on patients and their families. It is imperative to prevent such cuts from taking effect, which is why I am proud to sponsor the Home Health Stabilization Act of 2025.”

The National Alliance for Care at Home (the Alliance) issued a statement of support of the bill and urged Congress to pass the legislation. 

 “With CMS proposing over $1.135 billion in home health payment cuts for 2026, essential care for millions of Americans is on the line,” said Steve Landers, CEO the Alliance. “While CMS must reverse course and correct its calculations, given what’s at stake for Medicare beneficiaries and the overall function of the Medicare program, Congress cannot stand still. The Alliance celebrates the exceptional leadership of Reps. Kevin Hern (R-OK) and Terri Sewell (D-AL) who today introduced the Home Health Stabilization Act of 2025, bipartisan legislation that would halt home health cuts in 2026 and 2027 and provide time for CMS and Congress to work with stakeholders to correct methodological errors, combat fraud and strengthen access to home health at this critical moment for our health systems.

“The 2026 home health payment proposal is the most egregious yet, using an approach rife with issues to impose a 9% cut, amounting to $1.135 billion in reduced home health payments next year,” Landers continued. “CMS must reverse course and correct its calculations to reflect clear and objective feedback already provided by the home health community. CMS should focus on addressing localized fraud and abuse that distorts the payment system and undermines legitimate patient care.

Other industry leaders have also voiced their support.

“Home health agencies deliver critical services that help older adults in healthcare recovery or ongoing aging in place,” said Katie Smith Sloan, president and CEO of LeadingAge. “The deep cuts in Medicare fee-for-service payment currently proposed threaten beneficiaries’ access to care and all providers’ viability–and may have a disproportionate impact on our nonprofit and mission-driven provider members by eroding their ability to serve as safety net partners, to accept complex referrals, and to maintain essential community services. We appreciate that Representatives Hern and Sewell recognize both providers’ need for relief from these looming reductions and the importance of older adults’ and families’ ability to continue to access care. This legislation relieves payment pressure, short-term, and ensures the time needed to work toward a sustainable solution. We wholeheartedly support it and appreciate the leadership of Representative Hern and Representative Sewell on this critical issue.”