October 31, 2011 / 9:17 PM / 6 years ago

CMS finalizes 2.31 pct payment cut to Home Health cos in 2012

Oct 31 (Reuters) - The United States Centre for Medicare & Medicaid Services (CMS) finalized a 2.31 percent cut in Medicare payments to home health agencies (HHAs) for 2012, lower than the proposed 3.35 percent in July.

CMS estimates a net decrease of $430 million to HHAs from last year, affecting providers such as Amedisys , Gentiva , Almost Family and LHC Group .

It also reduced the prospective payment system (PPS) rates to 3.79 percent for 2012 and an additional 1.32 percent reduction for 2013.

The U.S. government program for the elderly and physically disabled, Medicare, pays home health agencies through a PPS which pays at higher rates to care for those beneficiaries with greater needs.

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