CMS to launch adult day services demonstration

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Some Medicare beneficiaries will be able to receive adult day care services as part of their home health benefit, under a new demonstration project approved by the Centers for Medicare & Medicaid Services.

The three-year initiative, to be launched next February, will allow home health agencies to work with medical adult day care facilities. Beneficiaries will receive adult day care services as a substitute for a portion of home health services otherwise given in the home.

Only five home health agency sites and associated adult day care facilities will participate in the demonstration. The agencies will receive 95% of the home health prospective payment system rate for services provided to beneficiaries participating in the demonstration.

Up to 15,000 beneficiaries will be able participate at any time. Medicare beneficiaries typically pay out of pocket for adult day care services. During this demonstration they will not pay any such costs for the services.

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