Congress delays Medicare home health cuts—but only for two years
H.R. 5142 — Home Health Stabilization Act of 2025 · Filed by Kevin Hern (R-OK) · 21 cosponsors · Introduced Sep 4, 2025 · Referred to committee
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What it does
This bill delays Medicare payment cuts to home health agencies for 2026 and 2027 by reversing planned reductions (totaling about 9% combined) and instead providing positive payment adjustments. It essentially freezes home health payment rates at 2025 levels for two years, preventing the agencies from absorbing the scheduled cuts while Congress considers longer-term policy.
Why we flagged it
The bill's core function is to suspend scheduled Medicare payment reductions for home health agencies for two years. While framed as protecting beneficiary access, it is mechanically a temporary subsidy to the home health industry, deferring cost-control measures.
What the text implies
- The bill does not address the underlying policy question of whether the 2026 cuts are justified by efficiency gains or cost control; it simply delays the decision, potentially creating a cliff in 2028 when the freeze expires.
- By excluding the additional amounts paid under the delay from future adjustment calculations, the bill may create a permanent baseline increase in home health payments, shifting long-term Medicare costs upward.
The full analysis lists 3 implications of this text.
Who stands to gain
home health agencies; home health service providers; home health staffing companies