Home Health Stabilization Act of 2025

The Home Health Stabilization Act of 2025 aims to ensure stability in Medicare payments for home health agencies during 2026 and 2027. It specifically addresses proposed negative adjustments to the standard prospective payment amount for these years, seeking to prevent significant reductions in funding. The bill mandates that the Secretary of Health and Human Services provide a positive adjustment to fully offset both the -4.059 percent Permanent Adjustment Factor and the -5.0 percent Temporary Adjustment Factor proposed for the calendar year 2026 national, standardized 30-day period payment rate. This ensures that home health agencies receive adequate compensation for their services. Furthermore, for 2026 and 2027, the national, standardized 30-day period payment rate will be established based on the 2025 rate, incorporating the new positive adjustment. Crucially, this rate will not be subject to further adjustments typically made for budget neutrality under existing law. The legislation also specifies that when calculating actual expenditures for these years, the additional amounts paid due to these new provisions must be excluded, preventing subsequent offsets to the increased payments.