HR 7027: Analyzing the Home Health Stabilization Act
Bipartisan legislation introduced in the house aims to protect Medicare beneficiaries & home health services
By Michelle Love
In September, Reps. Kevin Hern and Terri Sewell introduced the Home Health Stabilization Act of 2025 (HR 7027). The legislation aims to ensure patients have access to rehabilitative care by pausing the payment cuts called for in the Centers for Medicare & Medicaid Services’ (CMS) Calendar Year 2026 Home Health Prospective Payment System proposed rule. The legislation also looks to create a more sustainable payment system for Medicare home health agencies (HHAs).
FROM THE INDUSTRY:
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“With CMS proposing over $1.135 billion in home health payment cuts for 2026, essential care for millions of Americans is on the line. While CMS must reverse course and correct its calculations, given what’s at stake for Medicare beneficiaries and the overall function of the Medicare program, Congress cannot stand still.” — Steve Landers, CEO of National Alliance for Care at Home
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“Home health is a lifesaver for millions of seniors and their loved ones, especially in rural states like Oklahoma, where hospitals and nursing facilities may be hours away. Slashing home health payments not only undermines access to this critical benefit, but it also drives up overall Medicare costs by forcing patients into more expensive care settings. This bill ensures seniors can get the care they need at home, while protecting taxpayers from wasteful spending.” — Rep. Kevin Hern
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“The deep cuts in Medicare fee-for-service payment currently proposed threaten beneficiaries’ access to care and all providers’ viability—and may have a disproportionate impact on our nonprofit and mission-driven provider members by eroding their ability to serve as safety net partners, to accept complex referrals and to maintain essential community services. This legislation relieves payment pressure short-term and ensures the time needed to work toward a sustainable solution. We wholeheartedly support it.” — Katie Smith Sloan, president and CEO of LeadingAge
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“Home health services are a lifeline for so many Alabama seniors and people with disabilities, allowing patients to receive the treatment they need in the comfort of their own homes. The impending cuts to the Medicare home health program will leave lasting negative impacts on patients and their families. It is imperative to prevent such cuts from taking effect, which is why I am proud to sponsor the Home Health Stabilization Act of 2025.” — Rep. Terri Sewell
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Key Takeaways
In a press release, Hern said HHAs have suffered multiple setbacks in recent years, putting a strain on the nurses, therapists and home health aides who serve Medicare beneficiaries. Since 2020, more than 1,000 home health agencies have closed, and nearly one-third of patients referred to home health care from hospitals are unable to receive services. The legislation would pause funding reductions to give Congress and the industry time to develop a more sustainable payment system.
What Happens Next
The comment period for the CY2026 Home Health Proposed Rule closed on Aug. 29 with more than 15,000 comments received across all the items included in the rule. The final rule is expected to be released this fall and will go into effect Jan. 1, 2026.
Michelle Love is associate editor for HomeCare Media.
