House passes bill providing relief from 25% Rule

The House of Representatives today approved AHA-supported legislation (H.R. 5713) that would extend 25% Rule relief to long-term care hospital discharges between Oct. 1, 2016 and June 30, 2017. “For LTCH referrals that exceed a specified threshold, the 25% Rule policy currently reduces the Medicare payment from the LTCH rate to a far lower amount that is equivalent to an inpatient prospective payment system payment,” AHA Executive Vice President Tom Nickels wrote in a recent letter of support for the bill. “This policy arbitrarily penalizes LTCH admissions based on the origin of an LTCH referral, with complete disregard for the patient’s medical necessity for LTCH services.”