Medicare Advisers Mull Payment Cuts for ‘Profitable’ Senior Care

Advisers to Congress on Medicare policy weighed recommendations Friday to reduce payments to providers that care for the elderly such as home health agencies and hospices, citing the industry’s profitability.

The panel of experts from the Medicare Payment Advisory Commission—an independent US agency that advises Congress on Medicare issues—noted at its December public meeting that traditional Medicare payments generated healthy margins for both hospices and at-home nursing providers.

The commission’s study of Medicare claims data revealed strong financial performance across both provider types, with home health agencies achieving gross margins of over 21% on Medicare claims in 2024, while hospices ...