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Home Health & Hospice Week

Reimbursement:

Copay Threat Grows Stronger, Thanks To MedPAC

Published on Fri Feb 03, 2012

HHA profit margin hits 19.4 percent, but steep drop predicted. The home care industry succeeded in fighting off a per episode copayment last year, but this year may be a different story. Expect to see another recommendation from the Medicare Payment Advisory Commission to institute a home health agency copayment, according to the commission's December and January meetings. Since home care spending statistics have remained fairly similar to the previous year (see box, p. 35), MedPAC plans to reiterate its suggestions from 2012 for this year's report to Congress that comes out in March, commissioners decided. Chief among those recommendations to Congress is a per episode copay, which MedPAC last year recommended be set at 10 percent, or about $300 for an average $3,000 episode. HHAs' growing profit margins were one main reason cited for the control on spending. Agencies' profit margin in 2010 was 19.4 percent, up from 17.7 [...]
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