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Home health providers warn of unsustainable Medicaid/Medicare rates and federal payment risks
Summary
Jill Olsen of VNAs of Vermont told the House Health Care Committee that home health and hospice agencies face shrinking Medicare margins, Medicaid rates far below cost, risk of federal clawbacks and a recent agency closure in Franklin County, calling for state rate and policy changes to preserve community care capacity.
Jill Olsen, executive director of VNAs of Vermont, told the House Health Care Committee on Jan. 15, 2025, that home health and hospice agencies are under “real financial pressure” from reduced Medicare payments, high Medicaid payer mixes and workforce shortages.
Olsen said home health agencies take roughly 16% of hospital discharges and that long‑term care discharges to skilled nursing facilities are approximately 17.4%. She reported that some agencies have Medicaid…
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