Proposed changes to the Medicare home health prospective payment system amounting to $290 million in reductions in 2014 are not fair and not right, the National Association for Home Care and Hospice said in a statement Friday.
The proposed changes apply the full 3.5% rate cut authorized under law and are based on 13.63% margins projected for 2013, NAHC said, which is higher than the association’s estimate of 8% to 9%—leading NACH to believe the proposal is based on an “unsupportable” calculation.
“The proposal places the 3.5 million Medicare beneficiaries receiving home care services at risk of losing access to care as nearly half of the providers of this vital service would be paid less than the cost of care. It is neither fair nor right and needs to be changed,” said Val Halamandaris, president of NAHC.
In 2012, Medicare spent about $18.2 billion on approximately 3.5 million beneficiaries who received home health services, CMS estimates.
Written by Elizabeth Ecker