How HHS Reforms Can Impact Your Nursing Home Billing Strategies

Last year on April 22, 2024, the U.S. Department of Health and Human Services commonly known as (HHS) made an announcement. It was a landmark move under the Biden-Harris Administration, which aimed at expanding access to high-quality care and strengthening support for families and care workers. While this announcement primarily targets care delivery and workforce equity, its ripple effects are poised to significantly impact nursing home billing services and reimbursement strategies as well. 

SunKnowledge: Redefining Nursing Home Billing 

At SunKnowledge Inc., we’re closely monitoring this development to ensure our clients and partners remain not only compliant but also operationally efficient and financially optimized. 

Related Reading: Optimize Your Nursing Home Billing with Sunknowledge Experts

Key Highlights of the HHS Initiative 

The initiative aims to enhance job quality for care workers, extend and improve care choices. As well as improve the safety and the quality of supervision in federally funded nursing homes facilities. The administration’s directive focuses on: 

  • Expansion of Medicaid funding for Home and Community-Based Services (HCBS) 
  • Setting national standards for care quality and access 
  • Increasing federal investment in family caregiver support 
  • Improving wages and job quality for direct care workers 
  • Enhancing oversight and transparency in care programs that can impact the billing 

How is the Biden-Harris Administration’s Action Plan for Nursing Home Reform working out in 2025? 

For a beginning, a huge structural change is expected in the billing operation. Especially for providers in long-term care, home health, and support services for the geriatric population.  

As of mid-2025, the Biden-Harris Administration’s care giving initiative is beginning to reshape the healthcare billing landscape in measurable ways. In fact, it is seen that Medicaid programs across several states have already started adjusting their Home and Community-Based Services (HCBS) waivers, introducing new billing requirements for caregiver support services such as respite care and care coordination. Also, documentation demands have intensified. In other words, payers require detailed records that demonstrate quality, caregiver involvement, and patient outcomes. Providers are also encountering increased scrutiny through audits and post-payment reviews, especially for long-term care and direct support services. With all these changes, it is no secret that it also creates opportunities for new billable services. But the question is, as implementation remains uneven across states, nursing home facilities need to stay alert to local Medicaid updates and evolving payer guidelines. Moreover, the overall policy shift is driving greater complexity but also opening doors for enhanced reimbursement if you have the right nursing home billing support by your side. 

What are the Nursing Home Billing Implications & Strategic Insights? 

  • Documentation & Compliance Stringency – With a push toward standardizing care access and quality, billing teams have to be quite efficient. As there will be more stringent clinical documentation requirements. And greater emphasis will be given on medical necessity and outcomes. 
  • Emerging Opportunities in Caregiver-Centric Billing – Federal backing for family caregivers introduces possibilities for bundled billing models for care management and support interventions. 
  • Rising Labor Costs and Reimbursement Pressure – With federal mandates targeting improved wages for care workers, practices will need to adapt staffing models with value-based reimbursement metrics. 

Related Reading: Outsourcing Nursing Home Billing: Separating Fact from Fiction

What This Means for Nursing Home Practices 

The coming months will mark a transition phase. Nursing home facilities that act early – by updating workflows, training staff, and adapting billing systems – will be better positioned to maximize Medicaid reimbursement and reduce compliance risk. 

As a trusted RCM partner, SunKnowledge is committed to: 

  • Delivering up-to-date state-of-the-art solutions at only $7 an hour 
  • Reduction in operational cost and aging AR 
  • Supporting seamless transitions and a no-contract billing solution 
  • Providing a scalable solutions to handle documentation and coding complexity 

Policy shifts like this reaffirm the need for robust, future-proof billing infrastructure and we are proud to be at the forefront of managing skilled nursing home billing. Be it long-term care, our experts are equipped to manage a seamless nursing home billing operation. With the tools and insights to thrive in a changing landscape, we take care of it all. 

Refer Link: https://www.cms.gov/newsroom/press-releases/biden-harris-administration-takes-historic-action-increase-access-quality-care-and-support-families