MedPAC advises Congress — yet again — that home health rebasing should occur

Medicare payment rates for home health agencies should be reduced by 5% in 2017, and there should be a two-year rebasing of the payment system beginning in 2019.

That’s the recommendation the Medicare Payment Advisory Commission (MedPAC) made in its latest annual report to Congress, released March 15.

The commission voted 17-0 in favor of the recommendations Jan. 12.

Last year’s report to Congress said that home health agencies’ profit margins for home health agencies justified omission of an inflation update for them in 2017. It also urged a two-year rebasing of home health rates.

Congress has rejected MedPAC’s recommendations in recent years, but allegations of provider overpayments could affect how payment system innovations are constructed, industry experts contend.

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