Potential Trump Impact on Home-Based Care: Opportunities and Challenges

January 23, 2025

The article explores the potential ramifications of the Trump administration’s policies on the home-based care sector, underlined with historical precedents, potential outcomes, and advocacy challenges. The topic delves into how Trump’s administration, known for its cost-cutting measures, could influence home-based care positively, emphasizing the need for providers to robustly advocate for their services in Washington.

Historical Optimism

Republican Health Care Achievements

The article begins on an optimistic note, recalling historical instances where Republican administrations implemented notable health care policies. Edo Banach of Manatt Health highlights achievements under Republican leadership, such as the establishment of the Medicare Hospice Benefit under Ronald Reagan and the Programs for All-Inclusive Care of the Elderly (PACE) during the first Bush administration. This historical optimism is grounded in the belief that the Trump administration could follow in the footsteps of its predecessors by introducing policies that benefit the home-based care sector. Banach suggests that this historical context opens opportunities for potentially positive developments under Trump’s leadership.

Optimism in the historical context of Republican health care achievements is based on showcasing how structured and effective policies can translate into increased opportunities for serving vulnerable populations, including those on Medicare and Medicaid. By drawing on the successes of previous administrations, Banach and others in the industry believe that similar strides could be made under Trump’s administration. This could potentially foster a favorable environment for home-based care providers, allowing them to expand their services and better meet the needs of patients who rely on Medicare and Medicaid.

Potential for Positive Developments

The notion of positive developments under Trump’s administration is not without reason. The article highlights how the administration’s focus on cost-cutting could align well with the cost-saving potential of home-based care services. Home-based care has consistently demonstrated its effectiveness in reducing overall care costs, making it an attractive option for an administration aiming to reduce government spending. Such alignment of fiscal objectives could lead to growth and innovation within the industry, benefiting both providers and patients.

Furthermore, the potential for positive developments is amplified by the proven track record of home-based care in delivering quality care while minimizing costs. The administration’s emphasis on fiscal prudence could result in policies that encourage further adoption of home-based care, recognizing its efficacy in managing and reducing healthcare expenses. This could spur innovations and improve access to care for millions of Americans, ultimately aligning with the overall mission of cost reduction and enhanced patient satisfaction.

Cost-Cutting and Home-Based Care

Aligning with Fiscal Objectives

A significant point made by Banach is the Republican focus on cost-cutting, particularly concerning the Medicare trust fund. This presents a window of opportunity for home-based care providers to demonstrate their value proposition. Banach argues that economic problems related to healthcare cannot be solved solely by cutting services but through the intelligent deployment of those services, suggesting that home-based care can play a crucial role in achieving these fiscal objectives. The alignment with fiscal objectives is clear, as home-based care has proven to be an effective strategy for reducing overall healthcare expenses.

The emphasis on cost-cutting aligns with the core principle of providing efficient, high-quality care at a lower cost, which is a fundamental advantage of home-based care. By reducing inpatient hospital stays and focusing on preventive measures, home-based care can significantly cut down costs, thus aligning with the administration’s fiscal goals. The onus is on home-based care providers to effectively communicate this value proposition to policymakers, ensuring that cost-saving opportunities are recognized and leveraged.

Proven Cost-Saving Examples

Examples of cost-saving through home-based care include hospice care, which saves Medicare approximately $3.5 billion annually for patients in their last year of life, according to a joint report by the National Alliance for Care at Home and NORC at the University of Chicago. Additionally, the Home Health Value-Based Purchasing Model (HHVBP) participants have achieved Medicare savings of over $1.38 billion across nine states over six years, showcasing the financial efficiency of home-based care services. These examples highlight the substantial savings that can be achieved through effective home-based care programs.

The proven cost-saving examples underscore the potential for expanding home-based care services as a practical solution to rising healthcare costs. By investing in home-based care, significant savings can be realized, not only benefiting the healthcare system but also providing patients with more personalized and efficient care. These cost-saving measures demonstrate the tangible benefits of home-based care, making a strong case for its expansion and support from the administration.

Medicare Advantage

Popularity and Impact

A pivotal issue addressed is the future of Medicare Advantage (MA). Despite facing scrutiny over claims denials and care delays due to administrative processes, MA has positively impacted the home health sector. Its popularity has surged, with more than 33 million beneficiaries enrolled in MA by 2024, representing about half of the entire Medicare population, up from 19% in 2007. Hospices have increasingly sought MA contracts to expand business lines such as palliative care and other services, driven by the program’s expanding beneficiary base.

The impact of Medicare Advantage on the home health sector is notable, as it has enabled hospices and other home-based care providers to broaden their services. This expansion has been fueled by the growing enrollment in MA, which offers an alternative to traditional Medicare with additional benefits. The administration’s stance on MA will significantly influence how Medicare dollars are allocated, potentially affecting the operations and strategies of home-based care providers.

Administration’s Stance and Speculation

Susan Ponder-Stansel, CEO of Alivia Care, notes that the administration’s stance on MA will significantly affect how Medicare dollars are managed. There is speculation about the administration potentially supporting a wholesale carve-in of the hospice benefit into MA, which would have far-reaching implications for service providers and beneficiaries. Such a move could fundamentally change the landscape of home-based care, requiring providers to adapt to new regulatory and financial frameworks.

The speculation surrounding the administration’s potential support for a wholesale carve-in of the hospice benefit into Medicare Advantage underscores the need for vigilant advocacy. Home-based care providers must stay informed about policy changes and proactively engage with policymakers to ensure that their interests are represented. By doing so, they can help shape policies that facilitate the continued growth and success of home-based care, ultimately benefiting patients and the healthcare system as a whole.

Advocacy and Implementation Challenges

Importance of Advocacy

Dr. Steven Landers, CEO of the National Alliance for Care at Home, underscores the importance of advocacy for home-based care providers. Effective advocacy is crucial not only for expanding access to care but also for addressing flaws in current initiatives such as the hospice Special Focus Program and the Patient-Driven Groupings Model for home health. Landers stresses that the industry’s primary battles often revolve around how the U.S. Department of Health and Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS) implement existing laws. The advocacy efforts focus on ensuring that implementation of these laws aligns with the needs of home-based care providers and their patients.

Advocacy plays a pivotal role in ensuring that home-based care providers have a voice in shaping policies that affect their operations. By actively engaging with policymakers, providers can offer insights and feedback on the practical implications of proposed policies, helping to refine and improve them. This collaborative approach can lead to more effective and supportive regulations, ultimately enhancing the quality of care provided to patients.

Building Relationships with Policymakers

Landers advocates for building relationships with new policy advisors and administrators to inform them about implementation issues and the real-world impacts that poorly executed policies have on home-based care providers and their patients. By establishing strong connections with policymakers, providers can communicate their concerns and work towards creating more favorable conditions for the home-based care sector. This targeted advocacy aims to refine policies to ensure they are beneficial rather than detrimental, thus supporting the sustainability and growth of the home-based care sector.

Building relationships with policymakers is a strategic approach to advocacy that can yield significant benefits for home-based care providers. By fostering open and constructive dialogues, providers can influence policy decisions and ensure that the unique needs of the home-based care sector are addressed. This proactive engagement is essential for navigating the challenges posed by new regulations and for promoting a supportive environment for home-based care.

Conclusion

The article delves into the possible impacts of the Trump administration’s policies on the home-based care sector, backed by historical precedents, potential outcomes, and challenges in advocacy. It examines how the administration, known for its cost-cutting initiatives, could positively affect home-based care. The discussion highlights the importance of providers strongly advocating for their services in Washington to ensure their voices are heard amid these policy changes. The piece reflects on past experiences and projects futures, underscoring the necessity for robust support and representation in the capital to navigate the evolving landscape. Understanding the implications of these policies, the article suggests, is crucial for maintaining and potentially enhancing the quality and accessibility of home-based care. The Trump administration’s focus on reducing expenses could lead to significant shifts within the industry, making it pivotal for care providers to remain engaged and vocal to protect and advance their interests and those of the individuals they serve.

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