tci Medicare Compliance & Reimbursement - 2016 Issue 2

Industry Note: MedPAC to Call for Another HHA Pay Cut in 2017

Soon, the Medicare Payment Advisory Commission (MedPAC) won’t be able to use home health agencies’ profit margins as a club to beat them over the head with. But unfortunately, that’s because their payments are being cut to the bone. Between 2001 and 2013, Medicare margins for freestanding agencies averaged 17 percent. In 2013, the average fell to 12.7 percent, and 10.8 percent in 2014, according to MedPAC’s Dec. 11, 2015 meeting. “The effects of sequestration and rate rebasing are starting to show,” says the National Association for Home Care & Hospice. MedPAC...

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