AHA Letter Supporting Home Health Stabilization Act (H.R. 5142)

November 3, 2025

Dear Reps. Hern and Sewell,

On behalf of our nearly 5,000 member hospitals and health systems, and other health care organizations, our clinician partners, including approximately 1,000 hospital-based home health (HH) agencies — more than than 270,000 affiliated physicians, 2 million nurses and other caregivers — and the 43,000 health care leaders who belong to our professional membership groups, the American Hospital Association (AHA) is pleased to support the Home Health Stabilization Act of 2025 (H.R. 5142).

Approximately one in five hospitalized Medicare beneficiaries is discharged to home health. These services play a critical role in alleviating pressure on hospitals, skilled nursing facilities and family caregivers, who would otherwise bear the responsibility of caring for these patients. Home health agencies also help prevent costly rehospitalizations by safely providing needed interventions at home, reducing the risk of complications and accidents.

This important legislation would pause the Centers for Medicare & Medicaid Services’ (CMS) planned cuts to home health (HH) services for two years, ensuring that Medicare beneficiaries continue to have access to high-quality, cost-effective care in the setting they prefer most — their homes. Unfortunately, over the past several years, home health providers — like other post-acute care organizations — have faced significant financial strain. Since CMS implemented its new Medicare fee-for-service payment system in 2020, permanent annual cuts of 2% to 4% have been imposed, with higher recoupments projected in the coming years. These reductions, combined with workforce shortages, rising administrative costs and other operational challenges, have created ripple effects throughout the continuum of care. Hospitals are now experiencing longer patient stays due to the increasing difficulty of securing timely home health placements.

Without relief, these cuts will continue to jeopardize access to essential services for millions of Medicare beneficiaries. By pausing CMS’ proposed cuts, H.R. 5142 provides much-needed stability for home health agencies, allowing them to sustain operations, retain staff, and continue delivering high-quality care in the home.

We are deeply grateful for your leadership in introducing this bipartisan legislation and for your ongoing commitment to protecting access to home health services.

Sincerely,

/s/

Lisa Kidder Hrobsky
Senior Vice President
Advocacy and Political Affairs