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Rep. Sewell introduces legislation to halt Medicare home health expenditures and prevent suggested reductions.

Terri Sewell Supports Home Health Stabilization Act

On Friday, Representative Terri Sewell from Alabama expressed her backing for a new law intended to prevent planned funding reductions in home health care.

The Home Health Stabilization Act, which Sewell sponsors alongside Kevin Hern, a Republican from Oklahoma, aims to delay the enforcement of certain regulations affecting the Medicare home health program for the next two years.

This follows an announcement from the Centers for Medicare and Medicaid Services about significant funding cuts proposed for home health care in 2026. The proposed changes could lower payments for home health hygiene services by approximately 6.4%, which amounts to around $1.13 billion more than what was budgeted for 2025.

Sewell’s office noted that, “This law suspends pressing fund cuts to give Congress and the industry time to develop better, more sustainable payment systems.”

She also pointed out that the new rules could make it harder for patients in Alabama to receive necessary care at home. “Home health services are the lifeline for many Alabama seniors and individuals with disabilities, allowing them to get the care they need in their own homes,” Sewell said in her statement about the legislation.

“Immediate reductions in the Medicare home health program will leave lasting negative effects on patients and their families,” she added. “It is essential to keep such reductions from happening, and we are proud to sponsor the 2025 Home Health Stabilization Act.”

Hern emphasized the importance of home health care for rural residents, where hospital access is often limited. “Home health care is a lifesaver to millions of seniors and their families, particularly in rural areas like Oklahoma, which can be hours away from hospitals,” he noted.

He further explained that cutting home health payments could actually drive up overall Medicare costs by forcing patients into more expensive care settings. “The bill ensures that older adults can receive the care they need at home while also protecting taxpayers from waste,” Hern stated.

According to Sewell’s office, over 1,000 home healthcare facilities have shut down nationwide since 2020, with nearly a third of patients being referred to home health care after hospital stays.

Support for the legislation comes from various leaders within the health industry, including Katie Smith Sloan, the CEO of LeadingAge, a group representing non-profit aging services providers. “Home healthcare providers are crucial for assisting older adults in regaining their health or continuing to age at home,” Sloan emphasized. She warned that the proposed Medicare cuts could threaten access to care for beneficiaries, especially affecting non-profit providers.

“This law alleviates payment pressures and provides the necessary time to work toward a sustainable solution,” she added, thanking both Representatives Hern and Sewell for their leadership on the issue.

Steve Landers, another CEO in the field, mentioned that it’s essential for CMS to reassess calculations that consider Medicare beneficiaries while stressing that Congress also needs to take action.

He pointed out that the law gives both the CMS and Congress an opportunity to collaborate with stakeholders to address errors and enhance access to home health care at a critical time.

Various organizations, including LeadingAge and the National Alliance for Home Care, have voiced opposition to the proposed CMS rules. A letter sent to CMS Administrator Dr. Mehmet Oz highlighted that the current reduction could approach 9%, compounding over subsequent years, which is unsustainable and poses a direct threat to patient access to home care.

Earlier this year, Sewell also sponsored a related initiative called “Saving Access to Home Health Care,” seeking to mitigate anticipated reductions in home health spending. The public comment period for CMS’s home medical regulations concluded on August 29, with the final rules expected to be released in early November.