Number: RL31628
Title: Medicares Home Health Benefit: Cost Sharing Issues and Options
Authors: Carolyn L. Merck, Domestic Social Policy Division 
Abstract: If Congress were to mandate cost-sharing for Medicare home health services, it would be important to design a system that did not create financial disincentives for beneficiaries to step down in a typical continuum in the cost of care, from inpatient hospital care, to skilled nursing facility care, to home health care. Requiring beneficiary cost sharing only for the first 60-day episode of care, or for all episodes of care, or only for second and subsequent episodes might depend on whether the prospective payment system encourages home health agencies to provide unnecessary continuing episodes of care. Cost sharing amounts could be calculated in a variety of ways, but considerations include balancing the affordability of out-of-pocket costs with consistency in cost sharing amounts for other Medicare services.
Pages: 9
Date: Updated October 30, 2002