Medicare cuts
reduce rehabilitation services The Balanced Budget Act of 1997 has reduced
reimbursement to agencies that provide Medicare services.There were three significant
changes that affect individuals needing rehabilitation,especially stroke victims.
Stroke victims are the highest users of Medicare services after they leave the
hospital. Hospitals receive about $5,000 to care for a stroke victim. Medicare penalizes
the hospital if the individual is released before 4.9 days of stay, to a nursing home,
home health agency or rehabilitation. The goal is ensure that hospitals provide
appropriate care and do not discharge patients early.
However, hospitals are now finding they are unable to find appropriate community
placements. Rehabilitation hospitals are not taking as many Medicare patients because of
the low reimbursements and nursing homes are unable to handle the acute level of care that
is needed.
If nursing homes are able to provide services, they too, receive a set amount of money
to care for an individual needing skilled care. The reimbursement is based upon a
functional rating system to determine the level of acuity of the condition. As the
individual's condition improves, the amount of reimbursement received by the nursing home
decreases. Rates are based upon 1995 costs to provide care.
Home health agencies are also reducing the number of services that are being provided
to patients. This is the result of how Medicare reimburses home care.
Agencies are serving more low cost beneficiaries (individuals who only need five or six
visits). Individuals who need more visits and care are finding it more difficult to find
care, especially if they have chronic, custodial needs that were previously believed to be
skilled needs.
Individuals can now receive a maximum of $1500 of service in physicial and speech
therapies combined, and $1500 in occupational therapy per provider. This means that if an
individual needs thirty or forty therapy visits, they would have to go to at least two and
probably three or four different agencies that provide therapy to receive adequate help
and rehabilitation (i.e. enough visits). This will be difficult on patients and will most
likely cause concerns for continuity of care.
In summary, stroke victims will find it more difficult to obtain rehabilitative
services. Patient advocacy will be most important for the stroke victim in getting care
and returning to a previous level of functioning.