Navigation Links
Hawaii Home Health Medicare Margins on Steep Decline
Date:6/13/2013

HONOLULU, June 13, 2013 /PRNewswire-USNewswire/ -- By 2017, Hawaii is facing Medicare Home Healthcare payment at least 11.7% below cost, and up to 27.8% below cost if proposed rebasing takes effect. Even without rebasing, Hawaii will be one of 10 states where Medicare Home Healthcare payments are below cost.

The Healthcare Association of Hawaii, in coordination with the Partnership for Quality Home Healthcare, today released data demonstrating that the rebasing of Medicare home health payments within the proposed Home Health Prospective Payment System (HHPPS) rule for 2014 will negatively impact Hawaii's home health sector and the nearly 3,000 vulnerable Medicare beneficiaries receiving home health by driving Medicare margins to an all-time low.  Leaders are urging regulators to carefully consider the home health sector's current-law economics when implementing this policy.

"Home healthcare is a valuable and clinically-effective healthcare service to the seniors of Hawaii, who will be put at risk if home healthcare is subjected to more Medicare funding cuts," said George W. Greene, Esq., President & CEO of the Healthcare Association of Hawaii (HAH). "Our community has been impacted by significant cuts in the last four years, which data show will put Hawaii home health Medicare margins on track to reach an all-time low."

"Home health services are crucial in providing a smooth transition from hospitalization to home," added Emilie L. Smith, Administrator of CareResource Hawaii and HAH Board Chair.  "Services can be delivered in a more cost-effective manner in the comfort of home. With continued cuts, many home health agencies, particularly on the neighbor islands, will find it difficult to keep their doors open.  This may result in increased rehospitalizations."

Under the Affordable Care Act (ACA), the Centers for Medicare & Medicaid Services (CMS) is directed to rebase home health payments between 2014 and 2017 by a percentage determined appropriate by the Secretary.  This percentage is to be implemented in equal increments during each year from 2014 through 2017.

Analyses developed with the support of Dobson DaVanzo and Associates and Avalere Health indicate that the current trajectory of Medicare home health reimbursement is on track to produce negative margins by 2017 in 10 states, including Hawaii, even if home health payments are not subjected to further legislative and regulatory reductions.  Under this 'best case' scenario, using the Medicare Payment Advisory Commission (MedPAC) methodology for calculating margins (which has been found to exclude many costs that home health agencies routinely bear), Hawaii's Medicare home health margin will fall to -11.7 percent by 2017.  

This decline is due to the impact of an estimated total of $72.5 billion in Medicare home health payment cuts – equivalent to a 22 percent reduction – made since 2009 through legislative and regulatory changes.  

The analyses illustrate the impact of cuts projected under multiple rebasing scenarios for the state of Hawaii, including: -0.5 percent rebasing, -1.2 percent rebasing and -3.5 percent rebasing annually from 2014 to 2017: 

  • Even without rebasing, Hawaii's Medicare home health payments will be 11.7% below cost.
  • If payments are rebased at 0.5 percent per year, Hawaii's Medicare home health payments will be 15.1% below cost.  [national average 2.7 percent above cost; 18 states would have negative Medicare home health margins]
  • If payments are rebased at 1.2 percent per year, Hawaii's Medicare home health payments will be 16.4% below cost.  [national average at cost; 19 states would have negative Medicare home health margins]
  • If payments are rebased to the statutory maximum of 3.5 percent per year, the national average Medicare margin would go negative beginning in 2015 and plummet to -11.4 percent in 2017, with every state in the nation projected to experience negative Medicare margins. Hawaii's loss would be the second biggest in the nation, at 27.8% below cost.

"We urge decision-makers to consider the economics we are already operating in before further reducing needed Medicare funding. Instead of more cuts, we urge lawmakers to embrace pro-patient solutions that better ensure beneficiary access to clinically advanced, cost-effective, patient preferred home healthcare services for all seniors," added Eric Berger, CEO of the Partnership for Quality Home Healthcare.

Across Hawaii, approximately 2,950 Medicare beneficiaries receive skilled home healthcare from home health agencies employing more than 2,700 home health professionals.

For a list of projected losses by state and fact sheets about Medicare Rebasing and Home Healthcare, visit www.HAH.org


'/>"/>
SOURCE Healthcare Association of Hawaii
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. The World Customs Organization (WCO) and the Institute of Research Against Counterfeit Medicines (IRACM) issue a new warning about the health and safety of African populations
2. Array BioPharma To Present At The Wells Fargo Securities Research And Economics 2013 Healthcare Conference
3. Olympus Showcases ENDOEYE FLEX 5 at Premiers National Healthcare Innovation Event
4. HeartWare Presentation at the Wells Fargo Securities 2013 Healthcare Conference to be Webcast
5. MediScripts and The Jed Foundation Team Up to Offer Physicians Additional Resources to Support Emotional Health of College-Age Students
6. Frost & Sullivan: mHealth Serves as the Catalyst for Healthcares Evolution
7. Aetna, Cardinal Health Specialty Solutions Alliance Delivers More Cost-Effective, Patient-Centered Cancer Care
8. Mylan to Speak at the Goldman Sachs 34th Annual Global Healthcare Conference
9. Sysmex America Honored by the Premier Healthcare Alliance for Operational Excellence
10. ARUP Laboratories Wins Legacy Award Presented by Premier Healthcare Alliance
11. AMRI CEO to Present at the 2013 Wells Fargo Securities Healthcare Conference
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/11/2016)... -- Kindred Biosciences, Inc. (NASDAQ: KIN ), a biopharmaceutical ... pets, today announced the submission to FDA of the ... (NADA) for Zimeta™ (dipyrone injection, KIND-012).  Positive topline results ... the control of pyrexia (fever) in horses were recently ... --> The Chemistry, Manufacturing, and Controls technical ...
(Date:2/11/2016)... SAN FRANCISCO , Feb. 11, 2016 Potrero ... system, is pleased to announce the appointment of George ... San Antonio, TX , WellMed is ... servicing over 200,000 patients and HMO members in ... founding WellMed in 1990 out of his own internal medicine ...
(Date:2/11/2016)... , Feb. 11, 2016  AfterPill.com is reporting that ... alcohol abstinence for all women who are at risk ... U.S. each year and raises the risks of unprotected ... --> According to the Guttmacher Institute, there ... women of child-bearing age, who have sex without the ...
Breaking Medicine Technology:
(Date:2/12/2016)... ... ... Vail knee specialist Robert LaPrade, MD, PhD was named one ... consists of physicians establishing, leading and partnering with ambulatory surgery centers across the United ... Center, also known as an ASC, is a modern health care facility focused on ...
(Date:2/12/2016)... ... 12, 2016 , ... Donor Network West, the organ procurement organization that heals ... with San Ramon Regional Medical Center. Under the collaboration, the first of its kind, ... accommodate a more certain time frame for donor families for the recovery of organs. ...
(Date:2/12/2016)... TX (PRWEB) , ... February 12, 2016 , ... ... of southwest Houston and surrounding communities by continuing it’s commitment to act as ... Family Promise. The organization works closely with area homeless families to fulfill immediate ...
(Date:2/12/2016)... ... 12, 2016 , ... Atlantic Information Services, Inc. (AIS) is ... an upcoming Feb. 24 webinar that will discuss ways health plans and PBMs ... as the $1,000-per-pill hepatitis C treatment Sovaldi and high-cost PCSK9 inhibitors to treat ...
(Date:2/12/2016)... Ranch, Colo. (PRWEB) , ... February 12, 2016 , ... ... over the past 35 years. A president has access to health and wellness resources ... of the free world, no single individual has a schedule as frenetic as the ...
Breaking Medicine News(10 mins):