CMS Proposes Elimination of RAPs, $250 Million Medicare Payment Increase
Posted on Saturday, July 13, 2019 6:30 PM
Last week, CMS detailed its plans regarding PDGM and its annual Medicare payment increase. CMS is planning a 1.3% increase in Medicare payments to home health agencies which equals an increase of about $250 million.
“We are proud to announce the new permanent home infusion therapy benefit that will give patients the freedom to safely access critical treatments, such as chemotherapy, at home instead of traveling to the hospital or doctor’s office, improving their quality of life,” said CMS Administrator Seema Verma. “We are also proposing updates to payments for home health agencies under the new Patient-Driven Groupings Model, which focuses on patient characteristics to more accurately pay for home health services, rewarding value over volume.”
CMS is also proposing to eliminate Request for Anticipated Payment (RAP), these are pre-payments for home health agencies where they can receive 50% - 60% of the anticipated payment upon the beginning of a patient’s care.
“CMS believes that phasing out RAP would help mitigate cash flow concerns by phasing out RAP payments over one year,” agency officials wrote in a press release highlighting the proposal.
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