CMS announced in a rule that it would not move forward with the Home Health Groupings Model. These regulations are effective on January 1, 2018.
According to CMS, this final rule updates the home health prospective payment system (HH PPS) payment rates, including the national, standardized 60-day episode payment rates, the national per-visit rates, and the non-routine medical supply (NRS) conversion factor, effective for home health episodes of care ending on or after January 1, 2018. The agency will take more time to engage with stakeholders and move towards a system that shifts the focus from volume of services to a more patient-centered model.
According to news reports, The agency also finalized a planned 0.4% decrease, or $80 million cut, for home health providers in 2018 and a majority of the cuts were called for in the Affordable Care Act, which mandated the reduction to address Medicare overpayments for home health services dating back to 2000. The CMS cut payments by $260 million for 2016, $60 million for 2015 and $200 million for 2014.
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