MedPAC Recommends Five Percent Rate Reduction for Home Health in 2019

The Medicare Payment Advisory Commission (MedPAC) submitted its Medicare payment policy report to Congress on March 15, recommending a 5 percent payment rate reduction to the home health care industry for 2019. The recommendation is in line with prior reports from MedPAC, which is tasked with advising Congress on the administration of the Medicare program. MedPAC also recommended a 5 percent cut in 2017.

MedPAC did not, however, recommend a payment update for four other health care sectors in 2019: long-term care hospital, hospice, ambulatory surgical center, and skilled nursing facility.

Congress is not required to follow MedPAC’s recommendations, and the payment cuts to the home health care space are often significantly less than the recommended figure. The 2018 prospective payment system final rule included a cumulative 0.4%, or $80 million, rate reduction.

ElevatingHOME continues to educate MedPAC and its commissioners on the high-quality, cost-effectiveness and efficiency of home-based care. MedPAC’s full report can be found here.

Contact Joy Cameron with any questions or concerns.

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