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The Centers for Medicare and Medicaid Services has tossed a plan to reduce home health reimbursements by $810 million next year and will give providers a 0.7% pay increase that amounts to $125 million.
The Centers for Medicare and Medicaid Services published the final rule setting Medicare fees for home health services next year on Monday. Home health industry groups strenuously objected to the proposed cuts and threatened to sue if CMS carried them out.
In a proposed rule published in June, CMS contended the cuts were necessary to correct overpayments made while implementing the Patient-Driven Groupings Model, a new payment methodology, in 2020. The Patient-Driven Groupings Model bases reimbursement on patient characteristics instead of the number of therapy hours provided.
Instead, CMS will phase in payment reductions to anticipate home health providers billing for the highest-paying codes under the Patient-Driven Groupings Model, the agency wrote in the final rule.
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