CMS Holds Its July Home Health and Hospice Open Door Forum
The Centers for Medicare & Medicaid Services (CMS) hosted its Home Health, Hospice, and DME Open Door Forum on July 8. A summary of home health and hospice issues are provided below.
2016 Home Health Payment Rate Update
The Centers for Medicare & Medicaid Services (CMS) issued a proposed rule (CMS-1625-P) that would update the Medicare Home Health Prospective Payment System (HH PPS) rates and wage index for calendar year (CY) 2016. In the CY 2016 proposed rule, CMS is implementing the third year of the four-year phase-in of the rebasing adjustments to the HH PPS payment. A 2.3 % basket market update is proposed along with a decrease in the national, standardized 60-day episode payment amount by 1.72 percent in each year for CY 2016 and CY 2017 to account for nominal case-mix growth between CY 2012 and CY 2014.
In addition, CMS recalibrated the case mix weights, again, for 2016 and plans to implement annual case mix weight adjustment as part of the payment rate updates. CMS officials announced that the recalibrated case mix weights (Table 9) issued in the propose rule contains errors. CMS has re-issued Table 9 and is posted on the web site. Finally, CMS is proposing to implement a Home Health Value-Based Purchasing (HHVBP) model effective for CY 2016. CMS estimates that the net impact of this proposed rule would result in a decrease in Medicare payments to HHAs of 1.8 percent ($350 million decrease) for CY 2016.
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