Home Health & Hospice Week

Payment:

LUPAs Go Up While Supplies Go Down

Rebasing passes LUPAs by.

Home health agencies may feel under-reimbursed for their services to Medicare patients, but at least payment for one type of service continues to rise.

As in previous years, the Low Utilization Payment Adjustment payment rates will rise by the full home health update percentage of 2.3 percent, the Centers for Medicare & Medicaid Services notes in the 2017 HH PPS proposed rule. Plus, “rebasing adjustments … will … increase the national per-visit payment amounts by 3.5 percent of the national per-visit payment amounts in CY 2010,” CMS adds (see per-visit rates, p. 195).

LUPA add-on rates also will increase, since they are calculated by multiplying the LUPA add-on factor (1.8451 for skilled nursing; 1.6700 for physical therapy; and 1.6266 for speech therapy) by the pervisit LUPA rates (which are increasing).

For example: “For LUPA episodes that occur as the only episode or an initial episode in a sequence of adjacent episodes, if the first skilled visit is SN, the payment for that visit would be $261.16 (1.8451 multiplied by $141.54), subject to area wage adjustment,” CMS explains in the rule.

On the other hand, reimbursement rates for non-routine supplies are subject to a 2.82 percent rebasing adjustment (see NRS rates, p. 195).

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