Legislative package includes impacts to HME
By HME News Staff
Updated 8:52 AM CDT, Thu May 29, 2025
WASHINGTON – Legislation passed May 22 by the House of Representatives contains provisions that could impact home medical equipment, including a possible 4% cut in Medicare reimbursement, says AAHomecare.
The association’s analysis of the 1,116-page bill – H.R. 1, the “One Big Beautiful Bill Act” – includes:
Medicare
The cut to Medicare reimbursement rates across the full spectrum of health care providers is automatically triggered by legislation that causes significant debt increases –commonly known as PAYGO cuts. Congress could choose to block implementation of the PAYGO cuts, as it has done in the past, but that would include meeting a statutory requirement for a 60-vote threshold in the Senate. Congress could take that action any time before the end of 2025 to prevent those cuts from beginning in CY 2026.
Medicaid
Provisions including work or school requirements for Medicaid enrollees could result in 7.6 million individuals losing coverage and more than $600 billion in decreased spending in the program over the next 10 years, according to Congressional Budget Office scoring. The bill sets a deadline of Dec. 31, 2026, for all states to begin verifying work or exemption status at the time of both enrollment and eligibility renewal.
However, prospects for the Medicaid-related provisions in the legislation remain very fluid as some Republican senators have voiced concerns over the potential impacts on Medicare beneficiaries in their states, AAHomecare says.
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