Home health providers facing payment cuts through Medicare Advantage (MA) were able to offset those losses by trimming their own costs, according to analysis published by the Medicare Payment Advisory Commission (MedPAC) on June 16.
 
The broader report to Congress on MA’s impact on a range of providers states that estimated declines in home health agency revenues and costs associated with MA penetration from 2013 to 2024 were around 2.7%, largely offsetting each other.
 
“The estimated decline in revenues could be driven by lower payment rates received for MA enrollees,” according to the report. “The decline in costs could be driven by fewer visits (though we also did not find statistically significant declines in total visits) or other cost efficiencies that HHAs were able to achieve as MA penetration increased.”
 
The analysis notes that small agencies had a tougher time making up the difference in lost revenue associated with MA penetration, with all-payor revenue falling at 8.8% and all-payor costs falling at 8.1%.
 
Read the full report at medpac.gov.