Payment for Home Health Services

Any of the following may pay for home health services:

  • Health insurance company.
  • Long term care insurance company.
  • Health maintenance organization.
  • Medicare
  • Medicaid
  • Individual client or family.

Medicare now pays agencies a fixed fee for a 60-day period of care based on a client’s condition. If the cost of providing care exceeds the pay­ment, the agency loses money.  If the care provided costs less than the payment, they make money.  For these reasons, home health agencies must pay great attention to costs.  And because all payers monitor the quality of care provided, how work is documented or recorded is very important.