CMS to Allow Non-Skilled Home Care Benefit in Medicare Advantage

Brian Anderson

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Bad news for LTCI? Tipped off about this by Ron Iverson's NAMSMAP newsletter today.

On Feb. 1, CMS released proposed changes for the Medicare health and drug programs in 2019 that increase flexibility in Medicare Advantage that will allow more options and new benefits to Medicare beneficiaries...

From the CMS release (link below):
As a part of these changes, CMS is redefining health-related supplemental benefits to include services that increase health and improve quality of life, including coverage of non-skilled in-home supports, portable wheelchair ramps and other assistive devices and modifications when patients need them.
"Our priority is to ensure that our seniors have more choices and lower premiums in their Medicare health and drug plans," said CMS Administrator Seema Verma. "We are focused on addressing the specific needs of beneficiaries and providing new flexibilities for Medicare Advantage plans to offer new health-related benefits. This is a big win for patients."
CMS has previously not allowed an item or service to be eligible as a supplemental benefit if the primary purpose included daily maintenance. Under the new policy announced today, CMS would allow supplemental benefits if they compensate for physical impairments, diminish the impact of injuries or health conditions, and/or reduce avoidable emergency room utilization.


So CMS is going to start allowing MA plans to offer some LTCI-type benefits?

2018-02-01 - Centers for Medicare & Medicaid Services
 
I would presume these same benefits will be extended to original Medicare, which means they would spill over to Medigap.
 
Well...if Medicare is already broke, why not get it to cover more stuff? :-)

Bringing in a home health care agency today for 8 hours a day 5 days a week is only $30-40K per year...hence the need for HHC coverage in a LTC policy.

I'd imagine there is enough fine print exclusions in this proposal to not have people dropping their LTC policies any time soon. LTCi insurance buyers are also generally not Medicare Advantage clients.

Maybe they are bringing the Class Act again....and we all know how that went.
 
The operative phrase here is "will be" . . . as in possibly in the future

How is Wilbur?


The "supplemental benefits" in the Chronic Care Act will not even be available to every MA enrollee. The MA's will have the option to choose which areas and patient groups will get these supplemental benefits. The supplemental benefits are NOTHING like what a long-term care policy provides.
 
Bad news for LTCI? Tipped off about this by Ron Iverson's NAMSMAP newsletter today.



So CMS is going to start allowing MA plans to offer some LTCI-type benefits?


Here's the law's definition of the supplemental benefits that MA plans may now include:

''(I) IN GENERAL.—Supplemental
benefits described in this clause are
supplemental benefits that, with
respect to a chronically ill enrollee, have
a reasonable expectation of improving
or maintaining the health or overall
function of the chronically ill enrollee
and may not be limited to being
primarily health related benefits."
 
Bad news for LTCI? Tipped off about this by Ron Iverson's NAMSMAP newsletter today.

On Feb. 1, CMS released proposed changes for the Medicare health and drug programs in 2019 that increase flexibility in Medicare Advantage that will allow more options and new benefits to Medicare beneficiaries...

From the CMS release (link below):
As a part of these changes, CMS is redefining health-related supplemental benefits to include services that increase health and improve quality of life, including coverage of non-skilled in-home supports, portable wheelchair ramps and other assistive devices and modifications when patients need them.
"Our priority is to ensure that our seniors have more choices and lower premiums in their Medicare health and drug plans," said CMS Administrator Seema Verma. "We are focused on addressing the specific needs of beneficiaries and providing new flexibilities for Medicare Advantage plans to offer new health-related benefits. This is a big win for patients."
CMS has previously not allowed an item or service to be eligible as a supplemental benefit if the primary purpose included daily maintenance. Under the new policy announced today, CMS would allow supplemental benefits if they compensate for physical impairments, diminish the impact of injuries or health conditions, and/or reduce avoidable emergency room utilization.


So CMS is going to start allowing MA plans to offer some LTCI-type benefits?

2018-02-01 - Centers for Medicare & Medicaid Services



The whole idea behind Medicare Advantage plans, Brian, is to slow the growth of federal spending on Medicare, not accelerate it.

In 2014, the average long-term care daily benefit was $138 and the average benefit period was 5.3 years. Do you think adding $50,000 per year of custodial care to a Medicare Advantage plan is going to reduce the growth of Medicare? Adding that kind of benefit to Medicare Advantage plans would destroy the program.


sao
 
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