Home Health & Hospice Week

Double digit profit margins drive advisory body's recommendation for cuts. If MedPAC gets its way, you'll be seeing significantly less reimbursement starting next year. In its Jan. 14 meeting, the Medicare Payment Advisory Commission voted to tell lawmakers to eliminate the inflation update for home health agencies next year (see box, this page). The advisory body to Congress also wants to see HHA rates rebased to a lower level. And MedPAC proposes safeguards against care stinting due to rebasing, more quality measures, and stronger fraud and abuse enforcement action from the Department of Health and Human Services. The recommendation for cuts should come as no surprise. MedPAC hasn't been happy with the rate of growth in the industry. In 2009 there were about 10,400 HHAs -- almost a 50 percent increase since 2002, noted MedPAC staffer Evan Christman in the meeting. Plus, HHA margins continue to be relatively high at an estimated 13.7 [...]