What to Expect: Home Health Care 2025 and Beyond

On January 20, President Donald Trump was sworn in as the 47th president of the United States. Regardless of political affiliation, changes are on the horizon for the healthcare sector, particularly for home-based care. Healthcare has long been a focus of election cycles because it impacts everyone, and this administration will likely continue the conversation.

Advances in medical technology have enabled significant improvements in healthcare outcomes. Babies born with medical complexities now live longer, adults with chronic conditions manage symptoms more effectively, and people recover from surgeries and hospitalizations more quickly at home. Amid these changes, one trend remains clear: Americans increasingly prefer to age in place, staying in their communities instead of moving to nursing homes or institutions.

This preference aligns with state Medicaid budgets, which are gradually shifting more funds toward home and community-based services (HCBS). Home care is also a more cost-effective option than institutional care. However, outdated policies and funding mechanisms continue to present challenges. Because in-home care is primarily government-funded, the dictated funding formulas set caregivers’ wages and cover other costs, resulting in professional in-home caregivers earning less than their counterparts in hospitals and other facilities.

Home is the healthcare setting of the future, but systemic issues must be addressed to ensure its accessibility and viability.

Here’s how the next four years could impact home-based care:

Potentially Positive Policy Shifts

President Trump’s campaign has signaled a commitment to prioritize home care. Proposed initiatives include reallocating resources to at-home senior care, removing barriers contributing to caregiver shortages, and offering tax credits and reduced regulations to support unpaid family caregivers. These reforms would recognize the fiscal and social advantages of keeping individuals in their homes – if the administration follows through on these promises.

The home care industry has long emphasized that in-home care is the most cost-effective and compassionate choice. However, its reliant on the incoming administration making meaningful changes towards addressing the policy and funding biases that have hindered home healthcare for decades.

Probable Threats to Funding

Despite promising rhetoric, the industry may still face challenges. The Centers for Medicare and Medicaid Services (CMS) has repeatedly proposed cutting Medicare Home Health funding, which supports seniors and individuals with disabilities recovering at home. These services are critical vulnerable aging Americans, yet cuts are frequently recommended by the Medicare Payment Advisory Commission (MedPAC). MedPAC’s suggestion of a 7% cut to Home Health funding could influence future proposals, requiring advocates to fight once again for fair and necessary support.

Dr. Mehmet Oz at CMS: Opportunities and Concerns

Trump’s pick to lead CMS, Dr. Mehmet Oz, has expressed support for Medicare Advantage (MA), a program run by private insurers designed to reduce costs. However, MA plans often limit home health visits and overall care intensity, potentially prioritizing profits over patients. Studies show worse outcomes for MA beneficiaries who use home health services compared to traditional Medicare plans. If Dr. Oz shifts incentives toward MA, it could negatively impact the home health industry and the patients who depend on it.

A Healthcare-Savvy Congress

The 119th Congress includes a record number of members with healthcare backgrounds, such as optometrists, pharmacists, and nurses. This increased representation could bring greater focus to quality healthcare options, including care at home. With more healthcare advocates in political office, there’s hope for long-overdue investments in the home care workforce and infrastructure.

The Path Forward

Regardless of political leadership, home care must earn its place as a cornerstone of America’s healthcare system. As the population ages, investing in home care is both fiscally responsible and essential for the well-being of our aging and disabled loved ones. Federal action is needed to modernize Medicare’s outdated language, address caregiver shortages, and secure fair funding for home-based care.

Industry leaders, policymakers, and advocates must work together to ensure that home care is accessible and sustainable. By addressing these challenges, we can build a healthcare system that supports individuals’ preferences to age at home while providing cost-effective solutions for the nation.

Join Us!

The next four years present a critical opportunity for home healthcare to gain the recognition and support it deserves. We invite you to join us as we continue our focus on preserving home-based care for all who wish to receive it. With our collective efforts, the industry can move closer to a future where care at home is not just an option but a standard for compassionate, effective healthcare.