Addus HomeCare ‘disappointed’ HHS kept 80% payment threshold

Addus HomeCare commented on the final rule announced on April 22 by the Department of Health and Human Services known as “Ensuring Access to Medicaid Services.” The rule incorporates new requirements governing Medicaid Services, including home and community-based services. The proposed requirements are intended to improve access to care, increase transparency and accountability, and promote health equity for Medicaid beneficiaries, including those who receive home health services, the company noted. One provision of the rule, which was originally proposed in April 2023, mandates that state Medicaid agencies be required to ensure that a minimum of 80% of Medicaid payments for personal care and similar services be spent on compensation for the direct care workforce. The final rule has kept this requirement, however, it extends the period for states to comply to six years from four years after the effective date of the final rule, says Addus. Dirk Allison, CEO of Addus, added, “As a provider of home care services, we support the stated goal of HHS to expand access to more services like ours for Medicaid beneficiaries while providing for a stable ongoing workforce. The new reporting requirements, additional monitoring and quality measures will strengthen necessary safeguards that promote more consistent care for the patients we serve. However, we are disappointed that HHS elected to keep the 80% payment threshold in place, despite over 2,000 comment letters to HHS from our industry and trade groups over the past year, which pointed out the significant challenges implementing such a provision would create…We will continue to evaluate the potential impact of all aspects of this rule on our business, as we will have at least six years to prepare for final implementation…We would expect to see the most significant negative impact from implementation of the rule on smaller providers and the beneficiaries they serve…We also anticipate legal challenges from multiple stakeholders, including states, to prevent implementation of this provision, although the potential outcome of such litigation is unknown.”