CMS PROPOSES PAYMENT CHANGES TO MEDICARE HOME HEALTH FOR 2013

Cms.gov: Friday, July 06, 2012
The Centers for Medicare & Medicaid Services (CMS) today announced proposed changes to the Medicare home health program for 2013 that would foster greater efficiency, flexibility, payment accuracy and improved quality.

In the proposed rule, on display in the Federal Register today, CMS proposes to reduce Medicare payments to home health agencies in calendar year (CY) 2013 by 0.1 percent, or $20 million.  The proposed decrease reflects the combined effects of the home health market basket and wage index updates and previously finalized reductions to the home health prospective payment system (HH PPS) rates to account for changes in coding practices.

The rule proposes to rebase and revise the home health market basket to ensure that it continues to adequately reflect the price changes of providing efficient home health services.  The CY 2013 home health market basket would result in a labor-related share of 78.535 percent and a non labor-related share of 21.465 percent.

Provisions of the Affordable Care Act apply a 1 percent reduction to the CY 2013 home health market basket update of 2.5 percent, resulting in a 1.5 percent increase for home health agencies next year.  As part of the 2012 HH PPS final rule, CMS finalized a reduction in rates of 1.32 percent in CY 2013 to account for growth in aggregate case-mix that is unrelated to changes in patients’ health status.   This is unchanged in this proposed rule.  CMS will continue to monitor any future changes in case-mix and make updates as appropriate.  Read More