Home Health & Hospice Week

Budget :

Home Care Gears Up To Fight Further Cuts

Latest proposals take biggest bite yet out of home care funding.

As public concern about the cost of health care reform rises, lawmakers are turning to funding sources to fuel their reform ideas -- and home care looks likely to suffer the consequences.

President Obama recently called for $313 billion in additional Medicare and Medicaid cuts, including so-called "productivity adjustments" that would decrease home health agency payments, notes the National Association for Home Care & Hospice.

And House Democrats released a draft of their health care reform bill that's even more punishing.

"The House committees have included every possible recommendation by the Medicare Payment Advisory Commission in an effort to generate the maximum possible funding for health care reform," NAHC laments. "This includes a freeze in the 2010 market basket update, rebasing home health payment rates in 2011, and accelerating case-mix 'creep' adjustments in the Medicare home health prospective payment system." The draft bill also floats a "productivity adjustment" beginning in 2010.

Take action: NAHC calls on providers to reach out to their elected representatives about the legislative proposal. If HHAs "react vociferously to these proposed cuts, it will persuade members of Congress to vote instead for taxing health care benefits and other taxes to help cover the costs of the program," the trade group believes.

Home medical equipment suppliers are under the budget hammer as well. The House bill contains cuts for wheelchairs via elimination of the first-month purchase option, notes the American Association for Homecare. And although not stated in the draft, AAHomecare and the National Association for Independent Medical Equipment Suppliers expect lawmakers to raise oxygen cuts as a health care reform funding source as well.

The trade groups urge HME suppliers to contact their reps, too. "Now is the time to make your voice heard," NAIMES says.