tci Medicare Compliance & Reimbursement - 2015 Issue 14

Home Health Reimbursement: Bigger Cuts Threaten HHAs' Existence

Latest Medicare rate update brings bad news for home health agencies. The Centers for Medicare & Medicaid Services (CMS) plans to save $350 million in the coming financial year. The third year of CMS’ four-year rebasing initiative will reduce the home health base payment rate by $80.95, CMS notes in the 2016 home health prospective payment system proposed rule released July 6. CMS also proposes to reduce HHA rates in calendar years 2016 and 2017 by 1.72 percent in each year “to account for estimated case-mix growth unrelated to increases in patient acuity … between CY...

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