President’s Budget Proposes Bundled Medicare Payment to Post-Acute Care Providers
In his proposed budget released last week (see NAHC Report, April 11, 2013), the President included a proposal to implement bundled payments beginning in 2018 for post-acute care providers - including long-term care hospitals, inpatient rehabilitation facilities, skilled nursing facilities, and home health providers. Under the proposal, payments would be bundled for at least half of the total payments for post-acute care providers. Rates, based on patient characteristics and other factors, would be set to produce a permanent and total cumulative adjustment of -2.85 percent by 2020. The Administration estimates this proposal would save $8.2 billion over 10 years. Beneficiary copayments, where applicable under current law, would still apply.
NAHC, in its Legislative Blueprint for Action, has opposed the bundling of home health payments with payments to other providers because it could cause a major disruption to the health care industry, would be anti-competitive, would increase the federal regulatory burden, and would erect a new and unnecessary barrier to beneficiaries’ access to quality care.