Dive Brief:
- CMS has issued a proposed rule that would cut Medicare payments to home health agencies next year.
- Home health agencies would see a $485-million payment decrease through adjustments to the 60-day episode rate, per-visit payment rates and non-routine medical supplies conversion factor, CMS said. The cuts would take away from a 2.2% ($427 million) increase in payments already underway.
- The rule also proposes changes to the requirement that providers must meet face-to-face with beneficiaries before beneficiaries can receive home health benefits, keeping the face-to-face aspect but eliminating the narrative requirement.
Dive Insight:
These proposals don't represent wholesale changes to home health reimbursement, but CMS is not stopping there. The agency has noted that it's considering testing a value-based purchasing model for home health agencies, beginning in 2016, which would tie payments to quality of care. The impact could be significant, as CMS is mulling a 5% to 8% payment adjustment scale that gradually moves up after each subsequent performance period. The agency will begin testing value-based payment for home health in five to eight states, and is asking for comment on its plans.