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Throughout the pandemic, Minnesota's home health care agencies and clinicians have had to navigate a series of setbacks and challenges that have made it more difficult to meet the increased demand for in-home care. Those challenges, including rising labor and still-high fuel costs, as well as record inflation, have worsened an already notable workforce crisis within the home health community, leaving an increasing number of at-risk patients without care.
Now, even as the home health sector continues to struggle with these factors, proposed Medicare cuts are threatening to pull the rug out from under home health providers in Minnesota and throughout the country. The impact would be detrimental to the entire home health care community — especially the nearly 33,000 Medicare beneficiaries annually across Minnesota who depend on home health.
Despite the enormous value home health offers to patients and families, Medicare is considering a roughly 8% permanent cut to home health care services. On top of that, Medicare is pushing for another $3 billion in cuts that would be imposed as a "clawback" for services provided since the onset of the pandemic — from 2020 through this year. Nationally, these cuts would slash billions from home health care in 2023 alone — including more than $37 million here in Minnesota.
These cuts would have a significant, negative impact on the home health care community's ability to care for the influx of new patients being referred to home health. Since March 2020, growing demand for these services has led to a 33% increase in referrals for home health; however, over that same time period, actual home health admission rates declined by 15% due the staffing challenges and labor cost pressures already impacting the sector. Three home health agencies in Minnesota have closed this year alone due to staffing shortages, and the proposed cuts would exacerbate this trend.
Additional cuts on top of all this will only undermine access to the home-based care services patients and their families prefer. That includes some of the most medically vulnerable, at-risk patient groups in our state. Nearly 92% of our state's Medicare home health beneficiaries live with at least three chronic health care conditions, compared with just 18% of Minnesota's Medicare beneficiaries overall. Home health services play an important role in the delivery of health care to patients who are quite simply safer, not to mention more comfortable, at home.
There is a chance these harmful cuts could be avoided, or at least delayed, but it requires Congress to act quickly. Fortunately, lawmakers in both the House and Senate have introduced legislation to address these cuts before they can do real harm. For the sake of Minnesota's home health providers and patients alike, lawmakers in Minnesota's congressional delegation should support and help pass the Preserving Access to Home Health Act of 2022.