Since the release of the Home Health Proposed Rule in July 2023 for 2024, the significance of the Behavioral Adjustment has been strongly emphasized – it’s a war we are losing and need to take action.

Last year, our rates experienced a decrease of more than 3%. For 2024, base rates will decrease by 2.89%. We do have a 3% Market Basket increase, however, we should have that 3% Market Basket increase on top of our current rates. Additionally, the deficit of over 3% that was implemented last year needs to be addressed.

The way in which the Behavioral Adjustment is calculated has raised many concerns and has been repeatedly questioned. Despite the doubts surrounding its methodology, CMS continues to hold their ground. We have reached out to Congress for assistance, leading them to request further information from the National Association for Home Care and Hospice.

The National Association has distributed a survey to numerous members, seeking responses from members who can help provide data that shows the degree to which traditional Medicare Fee-for-Service subsidizes Medicare Advantage, Medicaid, and other payers.

For the appropriate person in your organization to provide the detailed information needed, they can participate in the survey by clicking here.

The importance of the survey lies in the fact that MedPAC consistently reports substantial profit margins for home health agencies, but those figures are based solely on traditional Medicare data. It is widely known that most agencies who generate profits with traditional Medicare subsidize their losses in Medicare Advantage and Medicaid. Congress is now requesting detailed information to support this stance. Unfortunately, the cost reports will not provide the comprehensive data needed to demonstrate the losses incurred with Medicare Advantage and Medicaid.

We remain committed to collaborating with the National Association for Home Care and Hospice in advocating for the viability of Home Health Agencies. To sustain this ongoing battle, we require detailed information that can aid our cause. The current situation involves CMS refusing to relent, necessitating intervention from Congress. However, Congress requires additional documentation or information to act and help resolve this matter.

Should you have any further questions regarding the significance of the Behavioral Adjustment, or the survey released by the National Association for Home Care & Hospice, please feel free to reach out to us.

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