S. 3545Senate115th Congress (2017-2019)In Committee

Home Health Payment Innovation Act of 2018

Introduced October 3, 2018

AI-Generated Summary

Updated April 15, 2026 at 11:59 PM UTC

The Home Health Payment Innovation Act of 2018 changes Medicare rules for home health services. It lets certain Medicare programs and Medicare Advantage plans skip the rule that patients must stay confined to their home, and it updates how payment adjustments are calculated and applied. The changes affect Medicare‑covered patients who receive home health care and the agencies and plans that provide those services.

Key Provisions

  • Allows the Secretary, by Jan. 1 2020, to waive the “confined to his home” requirement in shared‑savings programs for home health services.
  • Permits Medicare Advantage organizations to waive the “confined to his home” requirement when they determine it benefits the enrollee.
  • Changes budget‑neutrality language so the Secretary “shall not make” certain adjustments and replaces “assumptions” with “observed evidence” when evaluating payment impacts.
  • Requires the Secretary to publish the data and reasoning (observed evidence) used to set payment rates, based on recent cost reports and claims after Jan. 1 2020.
  • Sets a rule for temporary payment changes: if a change is 2 % or less, apply it fully the next year; if it exceeds 2 %, phase it in so no single year’s update exceeds a 2 % increase or decrease.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S6496-6497)

October 3, 2018

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SenateIntro Referral

Introduced in Senate

October 3, 2018

SenateIntro Referral

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S6496-6497)

October 3, 2018

Floor Debate

1 member

What members said about S. 3545 on the floor

1 Republican
Susan M. Collins
Sen. Susan M. CollinsR-ME · Oct 3, 2018

Mr. President, I rise today to urge my colleagues to support the Home Health Payment Innovation Act, which I have introduced with Senator Stabenow and Senator Nelson. Our legislation would help…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Oct 3, 2018

Mr. President, I rise today to urge my colleagues to support the Home Health Payment Innovation Act, which I have introduced with Senator Stabenow and Senator Nelson. Our legislation would help…

Bill Text

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Introduced in SenateIssued October 3, 2018

II

115th CONGRESS

2d Session

S. 3545

IN THE SENATE OF THE UNITED STATES

October 3 (legislative day, September 28), 2018

Ms. Collins (for herself, Ms. Stabenow, and Mr. Nelson) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend title XVIII of the Social Security Act to improve home health payment reforms under the Medicare program.

1.

Short title

This Act may be cited as the Home Health Payment Innovation Act of 2018.

2.

Improvements to Medicare innovations and managed care related to home health services

(a)

Expanded waivers in shared savings programs

Section 1899(f) of the Social Security Act (42 U.S.C. 395jjj(f)), is amended by adding at the end the following: Beginning not later than January 1, 2020, the Secretary shall include a waiver of the confined to his home requirement under sections 1814(a)(2)(C) and 1835(a)(2)(A) in one or more programs under this section..

(b)

Flexibility in Medicare advantage plans

Section 1852 of the Social Security Act (42 U.S.C. 1395ww–2) is amended by adding at the end the following:

(n)

Flexibility if providing home health services

Notwithstanding any other provision of law, any MA organization shall be permitted to waive the confined to his home requirement in the home health services benefit when the organization determines it is in the best interest of the enrollee.

.

3.

Improvements to home health payment reforms under Medicare

(a)

Application of budget neutrality

Section 1895(b)(3) of the Social Security Act (42 U.S.C. 1395fff(b)(3)), as amended by section 51001(a)(2) of the Bipartisan Budget Act of 2018 (Public Law 115–123), is amended—

(1)

in subparagraph (A)(iv), in the fourth sentence—

(A)

by striking shall make and inserting shall not make; and

(B)

by striking and shall provide a description and all that follows through the period and inserting a period; and

(2)

in subparagraph (D)—

(A)

in the subparagraph heading, by striking assumptions and inserting observed evidence;

(B)

in clause (i)—

(i)

by striking differences between assumed and all that follows through and actual;

(ii)

by inserting attributable to the implementation of paragraphs (2)(B) and (4)(B) after behavior changes; and

(iii)

by adding at the end the following: The Secretary shall publish the determination under this clause with respect to an applicable year, including a description of the observed evidence used to make such determination, in the notice and comment rulemaking to update the prospective payment system under this subsection for such year. For purposes of the preceding sentence, the term observed evidence means statistically valid data from the most recent cost report and claims regarding changes in the nature of home health agency patients, patterns of care, service costs, and claims coding after January 1, 2020, reflecting behavioral changes relating to implementation of the provisions of and amendments made by section 51001 of the Bipartisan Budget Act of 2018 (Public Law 115–123).;

(C)

in clause (ii), by inserting attributable to the implementation of paragraphs (2)(B) and (4)(B) after expenditures; and

(D)

in clause (iii)—

(i)

by adding attributable to the implementation of paragraphs (2)(B) and (4)(B) after expenditures; and

(ii)

by adding at the end the following: If such a temporary increase or decrease does not exceed 2.00 percent in any given year, the Secretary shall apply the entire increase or decrease in the next calendar year payment update; however, if such a temporary increase or decrease exceeds 2.00, to provide for minimal disruption to patients and providers, the Secretary shall phase in the temporary increase or decrease in equal amounts not to exceed 2.00 percent in any given year through the respective calendar year payment updates..

(b)

Effective date

The amendments made by this section shall take effect as if included in the enactment of such section 51001(a)(2).