‘We need you to work with us’: Home health providers renegotiate better Medicare Advantage deals

05/22/25 at 03:00 AM

‘We need you to work with us’: Home health providers renegotiate better Medicare Advantage deals 
Home Health Care News; by Joyce Famakinwa; 5/20/25 
As Medicare Advantage (MA) enrollment continues to surge, home health providers have seen slim margins deteriorate further. Some providers have openly expressed their decision to reject financially unsustainable MA contracts. Abandoning unfavorable MA contracts may sometimes be necessary, industry executives told Home Health Care News. However, some providers have improved their MA standing by renegotiating rates or returning after walking away, leveraging data and understanding the needs of payer partners. “We have walked away, in specific states, from payers and Medicare Advantage groups because of rates and the inability to raise those rates, and pre-authorization terms,” G. Scott Herman, CEO of New Day Healthcare, told HHCN. 

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