Home Health modified payment system recommended by MedPAC

“This recommendation charges the Secretary with developing additional changes to home health payments to safeguard beneficiary care. The Commission believes that two types of safeguards need to be developed: financial safeguards that can be proposed concurrently with the rebasing recommended for 2011, and quality of care safeguards that can be implemented as soon as practicable.
Financial safeguards, such as profit and loss corridors, should be proposed concurrently when the rebasing is implemented in 2011. These financial safeguards would help to mitigate any adverse effects of the across-the-board reductions in Recommendations 2E-1 and 2E-2 by redistributing payments based on agency losses and profits. In addition, the Secretary should study possible refinements to PPS, such as altering the length of the episode and refinements to better account for patient characteristics related to chronic conditions. The results of the Secretary’s analysis would be financial safeguards that can be proposed in 2011, concurrently with the rebasing.