President’s Budget Proposes Additional Cuts and Copays to Medicare
April 16, 2013 08:32 AM
The President’s FY2014 Budget released last week proposes to reduce Medicare and Medicaid spending by $400 billion over 10 years. The spending cuts in the proposed budget would hit almost every sector in healthcare, particularly pharmaceuticals, hospitals, and skilled nursing facilities. The President’s budget would replace the across-the-board cuts required by the sequester law.
The proposal includes a home health copay identical to the President’s proposal in September 2011 along with reduced Market Basket Index (inflation) updates in 2014 to 2023. The copay proposal would create a co-payment for new Medicare beneficiaries of $100 per home health episode, starting in 2017.
In response to President Obama’s budget proposal, NAHC President Val J. Halamandaris said that, “essential home health services are at risk. Previously enacted changes will cut Medicare spending on home health services by $77 billion over the next ten years - while less than $20 billion is spent annually. As a result of these cuts, 50 percent of all Medicare participating agencies will be under water in 2014 — that is, paid less than their costs by Medicare. Congress should therefore resist making additional cuts and imposing home health copays for any reason, including postponement or elimination of scheduled cuts in physician fees or for deficit reduction.”
To read a more in-depth analysis of the President’s budget proposal – and how it will affect home health agencies, please click here.
Take action! Contact your lawmakers and ask them to Oppose Medicare Home Health Copays and Payment Cuts.