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HHS announces home healthcare final rule

By Stephanie Bouchard

The U.S. Department of Health and Human Services announced Thursday the finalization of the Community First Choice rule, a new state option under Medicaid.

The rule gives states the choice to get an increase of six percentage points in federal Medicaid matching funds "for providing community-based attendant services and supports to beneficiaries who would otherwise be confined to a nursing home or other institution," said HHS in a press release.

Along with announcing the finalization of the Community First Choice rule, HHS also revealed details of the Independence at Home demonstration project, which supports primary care practices in providing home-based care to chronically ill Medicare patients.

HHS received more than 130 applications to participate in the demonstration. An initial group of 16 organizations were selected to "test whether delivering primary care services in the home can improve the quality of care and reduce costs for patients living with chronic illnesses," said the HHS press release. Participation in the demonstration is voluntary for Medicare beneficiaries.

The demonstration project is set to begin on June 1 and run through May 31, 2015. The Centers for Medicare & Medicaid Services is seeking to learn through the demonstration how effective is delivering care in the home in improving care and reducing costs.

"We know that people frequently prefer to receive services in their own homes and communities whenever possible," said Kathleen Sebelius, HHS secretary, in a statement. "The rule and demonstration announced (Thursday) give people choice and provide states with flexibility to design programs that better meet the needs of beneficiaries."

In its press release about the Community First Choice rule, HHS also announced that it is seeking comment on a proposed rule that would revise Medicaid regulations impacting state home- and community-based services.

Among the proposals in the rule, states would be offered "new flexibility in providing necessary and appropriate services to elderly and disabled populations," reads the text of the proposed rule, including a limited payment reassignment exception that would allow direct payment to parties other than the individual practitioner providing a service.

Follow HFN associate editor Stephanie Bouchard on Twitter @SBouchardHFN.