Home Health & Hospice Week

Industry Notes:

MedPAC Makes HH, Hospice Cut Recommendations Official

Where’s the 2020 data?

Harsh recommendations from an influential advisory body to Congress have hit the books.

In its latest annual report to Congress released every March, the Medicare Payment Advisory Commission tells lawmakers they should cut the Medicare home health payment rate by 5 percent, freeze the Medicare hospice payment rate, and cut the hospice aggregate cap amount by 20 percent.

MedPAC commissioners unanimously approved the cuts and freeze in a January meeting, despite providers tackling the unprecedented-in-modern-times COVID-19 pandemic. The report cites high profit margins among the reasons for the tone deaf suggestions.

The report conveniently doesn’t use 2020 data, points out Tom Boyd, CEO of Aftercare Nursing Services.

“I don’t understand how MedPAC can justify a recom­mendation to cut Medicare payment rates by 5 percent,” protests Mark Sharp with BKD in Springfield, Missouri. “That kind of cut could be catastrophic for a large number of home health providers,” Sharp says in a statement shared with AAPC.

“You could find some hospices really struggling without a market basket update in their payment rates,” Sharp says about the freeze.

A link to the report is at http://medpac.gov.

Other Articles in this issue of

Home Health & Hospice Week

View All