MedPAC to Recommend No Home Health Payment Update for 2009

On January 10, 2008, the Medicare Payment Advisory Commission (MedPAC) approved a draft recommendation that Congress eliminate the update to Medicare payments for home health care services for 2009. In terms of spending, MedPAC reports that this recommendation would decrease spending relative to current law by $250-$750 million for 2009 and $1-$5 billion over 5 years. 

MedPAC expects for this recommendation to have no major implications for Medicare beneficiaries or home health agencies. In reaching its recommendation, MedPAC considered beneficiary access to services, improving quality indicators, the growth in the number of home health agencies, the relatively low cost growth per episode, and an estimated 11.4 percent margin for home health agencies in 2008.  For additional information, visit the MedPAC website where MedPAC has posted the transcript and presentation from the January 10, 2008 meeting.