Home Health Prospective Payment System: Truncated Reimbursement in 2017 Spells Woes for HHAs

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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 covers CMS’s proposed 2017 home health prospective payment system update and the Medicare payment policy changes affecting home health agencies. It explains the payment-rate update, rebasing adjustments, case-mix recalibration, rural add-on treatment, and related topics such as outlier payment policy and negative pressure wound therapy disposable devices. The piece is aimed at home health providers, coding and billing professionals, and reimbursement stakeholders who need to understand how the proposed rule may affect payment, operations, and access to care.

Why This Topic Matters

The proposed rule may affect home health reimbursement, agency finances, staffing, and operational planning. It also signals changes that providers and reimbursement staff may need to review during the comment period and before implementation.

Article Sections

  1. CMS proposed 2017 home health payment update

    Summarizes the proposed Medicare update for home health agencies and the general factors affecting the payment change. It also frames the industry and beneficiary concerns raised in response to the proposal.

  2. Provider reactions and operational concerns

    Describes reactions from industry associations, consultants, and attorneys about the broader financial and staffing impact of the proposal. It addresses concerns about agency sustainability, administrative burden, and access to care.

  3. HHAs’ Payments Outstrip Costs, According to Medicare

    Reviews CMS’s stated rationale regarding payment trends, cost data, and historical comparisons. It also discusses the agency’s view of utilization patterns and related market indicators.

  4. Get Used to Annual Recalibrations

    Covers annual case-mix recalibration and the challenge of comparing year-to-year payment changes. It also notes additional proposed payment policy updates and the rule’s public comment period.

What You Will Learn

  • What CMS proposed for the 2017 home health payment update
  • Why home health agencies expressed concern about the proposed changes
  • How CMS framed its payment and cost analysis
  • What areas of the home health payment system were being recalibrated or revised
  • Where the rule fits within the broader home health reimbursement landscape

Who Should Read This

  • Home health agencies
  • Reimbursement and billing professionals
  • Medical coding professionals
  • Healthcare administrators
  • Compliance and regulatory staff
  • Medicare policy analysts

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