Save Home Health: Duluth Home Health Community Decries Medicare Cuts to Home Healthcare

DULUTH, Minn., March 20, 2014 /PRNewswire-USNewswire/ -- Representatives of the Duluth home health community took part in a press conference with special guest Congressional candidate Stewart Mills to raise awareness about the unprecedented 14 percent cut to Medicare home health funding that went into effect on January 1 as part of the Affordable Care Act (ACA), commonly known as Obamacare. Home health advocates are deeply concerned about the negative impact this sweeping funding cut is having on patient access and healthcare jobs across the state in only the first few months of implementation.

As a result of a final regulation issued last year, the Obama Administration is cutting the Medicare home health benefit by 3.5 percent annually over the next four years - the maximum cut allowable by law (2014-2017). The rebasing of the Medicare home health benefit will amount to total cut of 14 percent. The Centers for Medicare and Medicaid Services (CMS) itself concedes that approximately 40 percent of home health agencies will be operating at a net loss by 2017. Such losses will lead to jobs loss, small business bankruptcy and closures, and – worst of all – barriers to care for vulnerable, homebound patients.

Recent data demonstrate that a cut this large has the potential to cause 3.5 million seniors and disabled citizens to lose access to home healthcare and nearly 500,000 healthcare workers to lose their jobs. The majority of patients served by home health are older, poorer, sicker and more likely to be female and from a minority population than other Medicare beneficiaries. The majority of the home health workforce, including skilled workers and caregivers are also women.

Save Home Health advocates also warn that the Obamacare home health rebasing cut is already leading to significant job loss.  Data released by the Bureau of Labor statistics this month show more job loss in the sector – with 3,800 home health jobs lost in the month of February alone – representing the largest single month job loss in home health in more than 10 years.

"Obamacare's Medicare cuts are wrong for Minnesota's seniors, wrong for every hard working Minnesotan, and bad for our economy.  I am here today because I firmly believe these unprecedented Medicare cuts to home healthcare must be stopped," said Stewart Mills, candidate for Minnesota's 8th Congressional district.  "I stand with the Save Home Health community in calling for relief from these harmful cuts that threaten our state's oldest and sickest seniors, put quality healthcare at risk, and ultimately increase healthcare costs by driving seniors to more costly healthcare settings."

In Minnesota alone, this cut stands to drive nearly 45 percent of home health agencies to net loss by the time the cut takes full effect - threatening access to care for 14,000 home health patients and job security for more than 8,000 home health professionals statewide.

"Having worked as a physician in the home health community for many years, I see firsthand the benefit that home healthcare provides to patients managing chronic disease or trying to regain their strength after a hospital stay," stated Dr. Susanne Pearce. "Cutting this critical benefit will leave seniors stranded without access to quality care in their own home, forcing them to seek care in higher cost institutional settings, or worse, forego necessary medical care altogether."

Numerous studies demonstrate that home health is the most cost-effective care setting for seniors and saves the Medicare program money by keeping patients in the home and out of the hospital. Home health is also the preferred setting - with 90 percent of seniors wanting to age in place according to AARP.

To learn more, visit www.savehomehealth.org.

SOURCE Save Home Health