Medicare scraps future pay model for home health companies

Home health companies dodged a major future pay cut. Photo: Darron Cummings / AP

The stocks of publicly traded home health companies soared Thursday after the Centers for Medicare & Medicaid Services tossed out a controversial new payment system that would have cut Medicare payments to home health providers by $1 billion in 2019.

Between the lines: This is yet another example of health care's lobbying power. The home health industry hated Medicare's proposed pay system, talked with the right people, and consequently got what it wanted.