Home Health Prospective Payment System: More Woes for HHAs Come Jan. 1

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Note:  The following article synopsis was NOT provided by AAPC. It was created by Find-A-Code/innoviHealth.

Article Overview

This article explains the 2016 CMS Home Health Prospective Payment System final rule and why it drew concern from home health stakeholders. It covers the overall payment update, the final reduction tied to case mix growth, rebasing-related adjustments, and comments from industry and advisory sources about how the changes may affect agency finances and access to care. The piece is relevant to home health providers, compliance and reimbursement professionals, and anyone tracking Medicare home health payment policy.

Why This Topic Matters

The rule affects Medicare home health reimbursement and may influence agency budgeting, operations, and long-term access to services for patients who rely on home-based care.

Article Sections

  1. CMS final rule and payment update

    Summarizes the CMS final rule for the home health payment system and the overall direction of the annual payment update. It also describes the broad context for the announced changes.

  2. Case mix growth adjustment and rebasing changes

    Covers the final reduction related to case mix growth and the phase-in of rebasing adjustments across payment components. This section discusses how the adjustments were modified from the proposed rule.

  3. Base episode payment rates

    Notes the updated base episode payment amounts for standard and rural settings. The section provides context for how the payment figures changed for the year.

  4. CMS response to access and margin concerns

    Explains CMS’s response to concerns about agency margins, costs, and access to care. It references the agency’s reliance on broader industry and advisory observations.

  5. Industry reaction and outlook

    Presents reactions from legal and regulatory commentators about the rule’s practical impact on home health agencies. It also discusses expectations for future payment pressures and operational effects.

What You Will Learn

  • How CMS framed the 2016 home health payment update
  • What broad categories of payment adjustments were addressed in the final rule
  • How industry observers reacted to the reimbursement changes
  • Why stakeholders viewed the rule as important for agency operations and access to care

Who Should Read This

  • Home health agencies
  • Medical coders and reimbursement staff
  • Healthcare compliance professionals
  • Medicare policy analysts
  • Regulatory consultants and attorneys

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