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Home Health Medicare Co-Pay: A Study in Unintended Consequences

In the Know

President Obama’s 2014 budget contains a $1.4 billion increase in discretionary spending for administrative expenses related to the implementation of Affordable Care Act. A large portion of the proposed budgetary increase is supposed to come from instituting $100 Medicare co-payments for Medicare patients who use home health care.

Robert Book, Ph.D., senior research director of Health System Innovation Network LLC and Douglas Holtz-Eakin, president of the American Action Forum, write for Forbes:

“The co-payment would apply to “episodes of care” requiring five or more visits over a period of 60 days or less, and is not immediately preceded by a hospital stay. In 2008, this would have applied to about 63 percent of episodes. One might think the goal to save tax dollars by replacing government spending with patient spending. But that’s not the case, as the average spending in a home health “episode” is $3,000, so the co-payment would…

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Published by 1healthcare

Medical Billing, Medical Coding, Hospital Revenue Cycle management.

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