Home Healthcare Services NAICS 621610

Nov 3, 2025 - Lawmakers Seek To Delay Proposed Medicare Home Healthcare Funding Cut

• Legislation under consideration in the US Congress would pause a proposed rate cut for Medicare home-health services that would reduce payments by $1.135 billion, or 6.4% from 2025 levels. Medicare covers home healthcare under certain conditions, such as when a patient is homebound, needs skilled nursing or therapy services, and has a doctor-ordered care plan from a Medicare-certified agency. The Home Health Stabilization Act of 2025 would ensure that 2025 payment levels would be kept in place for 2026 and 2027. About 2.7 million traditional Medicare beneficiaries received home healthcare in 2023 and the program spent $15.7 billion on those services. There were more than 12,000 home-healthcare agencies certified to participate in Medicare in 2023, according to MedPAC.
• A COVID-era federal government program that expanded access to telehealth expired on September 30, 2025. Home healthcare services that were able to provide more care due to the expansion of telehealth may be negatively impacted. The program lost funding when lawmakers failed to pass a budget plan by September 30. Budgets proposed from both sides would have continued the flexibilities through at least October or November. Restrictions on who could get telehealth services covered by Medicare were tighter before the COVID-19 pandemic. Virtual healthcare appointments were mostly reserved for beneficiaries living in rural areas, provider facilities in rural areas, or those working with certain types of providers. Some pandemic-driven changes were permanent but others rely on temporary waivers to operate. Some of these temporary allowances included the ability to use telehealth services from anywhere without geographic restrictions, to have appointments in audio-only formats, and to receive mental health and behavioral healthcare virtually without regular in-person appointments.

• Home health workforce shortages and rising wages are key reasons for rapidly-increasing home healthcare costs, according to Marc Cohen, co-director for the Leading Age Long Term Services and Supports Center at the University of Massachusetts-Boston. Costs for home healthcare for the elderly and bed-ridden have increased 14.2% during the 12-month period ending in March 2024, according to the US Bureau of Labor Statistics (BLS). That's the largest percent increase in home healthcare costs during a 12-month period since the BLS began collecting data on such costs in 2005. The median cost for a home health aide in 2023 was $33 an hour and that for a homemaker aide was $30 an hour, according to insurance company Genworth. The direct care sector is expected to add over 1 million new jobs by 2031, according to health care data analytics firm KFF, but those additional jobs will not be enough to meet the country’s rising eldercare needs.
• Home healthcare industry employment decreased slightly and average wages for nonsupervisory employees increased slightly during the first seven months of 2025, according to the US Bureau of Labor Statistics (BLS). Home healthcare services increased prices slightly during the first eight months of 2025, according to the BLS. Industry sales are forecast to increase at a 6.44% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.