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Potential change in PPS system being discussed by MedPAC

Posted on Monday, December 7, 2015 2:18 PM

The Medicare Payment Advisory Commission (MedPAC) indicated at their Nov. 6th meeting that the current home health payments based on therapy levels and 60-day episodes of care could be replaced with a radical overhaul of Medicare reimbursement for home health agencies, skilled nursing facilities, long-term care hospitals and inpatient rehab facilities.  In its place, is expected a “reasonably accurate” prospective payment system (PPS) for all post-acute care that will reimburse providers according to patient characteristics rather than the care setting and the amount of service provided.  A new basis for post-acute payments also would help in the creation of bundled payments that combine post-acute and inpatient reimbursement. The IMPACT Act mandates a MedPAC report on a post-acute PPS, which includes recommendations and a technical prototype in June 2023, which would be a rather slow timeline for these post-acute changes.  However, Kevin Brady, the new chairman of the key House Ways and Means Committee, hinted that he may be able to speed up the post-acute changes. You can find the full article in the December 7th issue of Home Health Line.      

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