Home Health & Hospice Week

Industry Note:

New HHS Initiatives Boost Medicaid Home Care

The Department of Health and Human Services is sending mixed messages about the value of home care, in many providers' eyes.

On one hand: CMS has instituted years of home health agency payment rate cuts, such as those for so-called "case mix creep," and has burdened HHAs with additional regulatory requirements, making the operating environment for Medicare-certified HHAs more difficult.

On the other hand: HHS has announced Medicaid initiatives to beef up home care. "We know that people frequently prefer to receive services in their own homes and communities whenever possible," HHS Secretary Kathleen Sebelius says in a release. "Prior to passage of the Affordable Care Act, many families had few choices beyond nursing homes or other institutions for their loved ones. The actions taken today will help change that and can lead to better health for these individuals."

HHS has finalized the Community First Choice rule, which is a new state plan option under Medicaid, the agency explains. Under the option, states will receive a 6 percentage point increase in federal Medicaid matching funds for providing community-based attendant services and supports to beneficiaries who would otherwise be confined to a nursing home or other institution.

And HHS has announced the first 16 organizations that will participate in the new Indepen-dence at Home Demonstration. "They will test whether delivering primary care services in the home can improve the quality of care and reduce costs for patients living with chronic illnesses."

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