The Centers for Medicare & Medicaid Services has unveiled a proposal that could slash Medicare payments to home health agencies by over $1 billion in 2026, signaling a significant shift in funding. Despite a routine payment increase, the net effect would be a 6.4% decrease, substantially impacting the home health industry.

As federal lawmakers propose staggering Medicaid cuts totaling $880 billion, states are grappling with the potential fiscal strain that could upend their balanced budgets and impact essential services. The impending reductions pose significant challenges for state economies and the citizens who rely on Medicaid.