Home Health Surety Bonds Have OIG and Industry Support: When and How Will CMS Act?

Almost fifteen years ago, the Centers for Medicare & Medicaid Services (CMS) adopted a final rule requiring home health agencies (HHAs) to post surety bonds in the amount of $50,000, or 15% of the annual amount received from Medicare, whichever was greater. That regulation quickly faced opposition by Congress and by the National Association for Home Care, and CMS responded by indefinitely postponing the implementation date for compliance. More recently, the Patient Protection and Affordable Care Act (ACA) allowed the amount of the surety bond to be set based on a HHA’s Medicare revenues. Although the law has remained unimplemented, recent OIG pressure and industry support are likely to lead to implementation.

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