Home Health & Hospice Week

Industry Notes:

Don't Count Out Copays

Beneficiaries need an incentive to decline care, GAO says.

The perennial money-raising proposal for lawmakers - home health copayments - may not have been raised in the most recent budget actions. But don't expect that to last.

The idea is still a popular one for both trim- ming Medicare spending and combatting waste, fraud and abuse, says the Government Account- ability Office in a new report, "Medicare Cost Shar- ing" (GAO-18-100).

Cost sharing "affects beneficiaries' utiliza- tion of services," the report maintains. "The lack of a coherent cost-sharing system is a significant con- tributor to overuse and misuse of care. This is par- ticularly true for services such as home health and clinical laboratory services, which currently have no cost-sharing under Medicare FFS and thus do not provide beneficiaries an incentive to decline care of negligible value."

The Medicare Payment Advisory Com- mission has been recommending a home health copayment for years for "home health services that were not preceded by hospitalization or post-acute

care," the GAO notes. "The current lack of cost- sharing has likely contributed to the significant rise in utilization for these services, which suggests some overuse," the watchdog agency contends.

Implementing costsharing isn't a perfect idea, however, the GAO admits. An effective copay- ment could "present a financial barrier for some ben- eficiaries to obtain necessary care," the report allows.

The report is at www.gao.gov/assets/690/689329.pdf.

Other Articles in this issue of

Home Health & Hospice Week

View All