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Eli's Rehab Report

Industry Notes:

Say Goodbye to Home Health Therapy Money Under MedPAC's Latest Recommendations

If Congress listens to the Medicare Payment Advisory Commission (MedPAC), it will pass these changes to home health agency reimbursement this year:

  • a rate freeze (0 percent payment update) for 2017;
  • two years of rebasing cuts starting in 2018;
  • eliminating therapy as a PPS factor in 2018, concurrent with rebasing.

“Home health payments need to be significantly reduced,” MedPAC insists in its annual report to Congress released in March. Current reductions are “modest, and substantial margins for many agencies are likely to remain, particularly for those that are efficient or focus on higher-paying services.”