Medpac Report to Congress Recommends Changes for Home Health, Hospice

In its March 15 report to Congress, the Medicare Payment Advisory Commission (Medpac) made recommendations for payment policy changes across 10 payment systems, including home health and hospice. Acknowledging that long-range payment reforms, such as penalties for excessive readmission rates, linking payment to quality outcomes, medical homes, bundling and accountable care organizations, will take several years to fully implement, the report recommends interim measures for reigning in reimbursement. In Medpac’s view, “if Medicare payment rates are constrained, that could create pressure on providers to control their own costs and to be more receptive to new payment methods and delivery system reforms.”

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