AAHomecare Will Ask Congress, Administration to Focus on Homecare as a Solution to the Growing Healthcare Crisis in the US

Main Category: Caregivers / Homecare
Article Date: 09 Feb 2005 - 10:00 PDT

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As the President's 2006 budget and Congressional debates focus on healthcare costs for seniors and the disabled, the American Association for Homecare (AAHomecare) will ask the administration and new Congress to support homecare as a patient-preferred and cost-effective solution to the nation's growing healthcare crisis.

Earlier this week in his first speech as the new Secretary of Health and Human Services, Michael Leavitt stressed the importance of homecare in delivering cost-effective care in the Medicaid system. Leavitt echoed last year's emphasis by HHS on "rebalancing" institutional care with home- and community-based care through the New Freedom Initiative and other programs developed by the Centers for Medicare and Medicaid Services (CMS). Kay Cox, President and CEO of the American Association for Homecare, met with Secretary Leavitt earlier this week.

"Homecare works," stated Kay Cox. "The advantages of homecare in Medicaid also translate to Medicare. Homecare is preferred by patients, is clinically effective, and delivers great value for Americans' healthcare dollar. Secretary Leavitt understands the dimensions of diseases that can be treated by homecare, such as Chronic Obstructive Pulmonary Disease (COPD), which afflicts more than 14 million Americans. Treatment and prevention of this disease has been championed by Senator Michael Crapo, chair of the Congressional COPD Caucus."

As Medicare grew rapidly over the last decade, Congress cut home health reimbursement in half after 1997, through to the Balanced Budget Act. Medicare spending on home health as a percentage of total spending declined from seven percent in 1993 to four percent in 2003, even as total Medicare spending continued to escalate. The Medicare Modernization Act of 2003 also required steep reimbursement cuts for a number of home medical services and equipment. According to a study released in May 2004 by the National Institute of Nursing Research, when elderly heart-failure patients receive specialized nursing care throughout their hospital stay and at home following discharge, they have a better quality of life and fewer hospital readmissions, resulting in a savings of nearly 38 percent to Medicare. Home health providers are implementing innovative programs, targeting specific diseases such as congestive heart failure for intense management through a combination of skilled nursing services and innovative technology, with great savings from avoided hospitalizations and emergency-room visits.

"Because homecare now encompasses virtually every service short of surgery, homecare offers the White House and Congress a great opportunity to reduce costs while expanding access to vital care for millions of Americans," Cox stated. "Homecare is the solution."

AAHomecare is the only national association that represents every line of service in the homecare community, including home health and home medical equipment providers, respiratory and infusion therapy, telemedicine, rehab and assistive technology, and hospice. With more than 3,000 member locations, AAHomecare advances quality healthcare services where patients prefer them - at home.

Michael Reinemer
Vice President, Communications
American Association for Homecare
625 Slaters Lane, Suite 200
Alexandria, VA 22314-1171
703-535-1881
http://www.aahomecare.org

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