Imagine being told that your loved one can recover safely and comfortably at home, only to learn that the care they need may no longer be available. That’s the harsh reality thousands of New Jersey families could soon face under a newly proposed Medicare rule that would dramatically cut funding for home health care.
At the end of June, the Centers for Medicare & Medicaid Services (CMS) released a proposed rule that would reduce the Medicare payment rates for home health services by a staggering 9% in 2026. That amounts to more than $1.1 billion in reduced payments to home health agencies nationwide, making it harder for older adults, people with disabilities, and vulnerable families to get the care they need where they want it most: at home.
Under a 2018 law, CMS is required to adjust payments to maintain a “budget-neutral” payment system. But this proposal goes too far, and the methodology used to calculate these adjustments is flawed. It attempts to “correct” projections made for 2020 and beyond, prior to the pandemic, and in doing so threatens to undermine the very system that helped so many people to heal at home.
Home health agencies, especially nonprofits, are already stretched thin by staffing shortages and rising wages. This is especially true in New Jersey, which has one of the nation’s largest projected nursing shortages. A cut of this magnitude will slash resources to hire skilled nurses and aides, cover equipment and travel expenses, and deliver frequent, high-quality home visits.
For patients, that means fewer visits from nurses and aides, reduced access to services like wound care and physical therapy and longer delays in starting care after hospital discharge. Agencies may have to shorten or cancel visits and, in some cases, shut down expensive but essential programs.
New Jersey has one of the fastest-growing aging populations in the country. Each year, over 75,000 Medicare beneficiaries in our state receive home health care, and nearly 90% of them live with three or more chronic conditions. These patients depend on skilled support to manage their health and keep their independence.
I’ve met families who credit home health care with saving their loved one’s life and preserving their dignity. These caregivers go beyond medical care to bring comfort, stability, and peace of mind. For many, they’re the lifeline that keeps families together.
Home health care reduces hospital readmissions, prevents complications, and gives people the chance to heal where they’re most comfortable. It’s also one of the most cost-effective forms of care available. In fact, strengthening home health services ultimately saves Medicare money by keeping people out of institutional settings and emergency rooms.
This is more than a budget issue; it’s a test of our values. Do we believe that older adults and people with complex medical needs should have the right to recover at home? And do we believe in dignity, independence, and access to care, regardless of zip code?
Congress has the power to step in and stop this cut. Lawmakers can delay or override CMS’s proposal, and if necessary, pass legislation to protect home health care funding. But they need to hear from us before the rule is finalized.
The ability to receive care at home shouldn’t be a privilege. It should be a promise we keep to those who need it most. Now is the time to ensure that promise doesn’t slip away.
Christopher Rinn is the president and CEO of VNA Health Group, New Jersey’s largest nonprofit provider of home health, hospice, and community-based care. He is the former Acting Commissioner of the New Jersey Department of Health.
