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MedPAC Suggests a 5% Cut to Home Health Payments

Posted on Wednesday, March 22, 2017 7:41 PM

Shortly after the Medicare Payment Advisory Commission (MedPAC) suggested a 5% cut to home health payments, the Medicare Payment Advisory Commission (MedPAC) submitted its final report to Congress for the Medicare Payment Policy for 2018.

Over the years, the 17-member commission has expressed their feelings towards home health care payments being too high. In addition, they’ve encouraged numerous recommendations.

On March 15, 2017, this recommendation involved a 5% cut to home health and inpatient rehabilitation services rate adjustments for 2018.

In 2017, home health payments were cut 0.7% overall.

Home health care groups continue to oppose cuts to home health care rates, arguing that MedPAC’s methods potentially show inflated margins to base their payment adjustments.

According to the report, if implemented, the commission expects savings of the 2018 recommendations to be “substantial”—a reduction in FFS spending of more than $30 billion over 10 years.

The commission also suggested that the new prospective payment system (PPS) for post-acute care be implemented sooner. The new PPS plans to adjust the current payment system without identified issues, including eliminating “the use of the number of therapy visits as a factor in payment determinations,” according to the report.

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