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Administration Budget Calls for Spending Cuts, Prior Authorization, Unified Payment System

Posted on Sunday, March 24, 2019 7:32 PM

Administration Budget Calls for Spending Cuts, Prior Authorization, Unified Payment System

This week, the Trump Administration released its FY 2020 budget, giving everyone insight into priorities and desired direction for the country.

The Department of Health and Human Services outlined a projected budget of $1.2 trillion in mandatory spending, and an additional $87.1 billion in discretionary spending, a 12 percent reduction. 

The Administration proposes that Medicaid be shifted from the federal state share responsibility model to a defined federal contribution model. They are also calling for a unified post-acute care prospective payment system (PAC-PPS) which would place all post-acute care providers under a singular reimbursement system.  They estimate that by doing this it will save over $101 billion over the next 10 years.

These are additional items that may impact home care and hospice providers:

  • Prevent Fraud by Applying Penalties on Providers and Suppliers who Fail to Update Enrollment Records
  • Require Reporting on Clearinghouses and Billing Agents when Medicare Providers and Suppliers Enroll in the Program
  • Expand Medicaid Fraud Control Unit Review to Additional Care Settings
  • Implement Prepayment Controls to Prevent Inappropriate Personal Care Services Payment
  • Allow Revocation and Denial of Provider Enrollment Based on Affiliation with a Sanctioned Entity
  • Establish Unique Identifiers for Personal Care Service Attendants

Source: NAHC Report



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