CHA has released the attached summary, prepared by Health Policy Alternatives, Inc., detailing the Centers for Medicare & Medicaid Services (CMS) final rule for the calendar (CY) year 2016 home health prospective payment system. The final rule implements payment and policy changes that take effect Jan. 1, 2016. Additionally, CMS finalizes implementation of a home health value-based purchasing model in nine states, not including California. CMS estimates that the final rule will reduce home health payments by a net $380 million, or negative 1.4 percent, in CY 2016.
CMS also responded to comments submitted in response to the proposed rule by stakeholders, including CHA, and made a few modifications to its proposals. Most notably, CMS will phase in the nominal case mix adjustment over three years, rather than two.