AAHomecare Will Ask Congress, Administration to Focus on Homecare as a Solution to the Growing Healthcare Crisis in the US

As the President's 2006 budget and Congressional debates focus on healthcare costs for seniors and the disabled, the
American Association for Homecare (AAHomecare) will ask the administration and new Congress to support homecare as a
patient-preferred and cost-effective solution to the nation's growing healthcare crisis.



Earlier this week in his first speech as the new Secretary of Health and Human Services, Michael Leavitt stressed the
importance of homecare in delivering cost-effective care in the Medicaid system. Leavitt echoed last year's emphasis by HHS
on "rebalancing" institutional care with home- and community-based care through the New Freedom Initiative and other programs
developed by the Centers for Medicare and Medicaid Services (CMS). Kay Cox, President and CEO of the American Association
for Homecare, met with Secretary Leavitt earlier this week.



"Homecare works," stated Kay Cox. "The advantages of homecare in Medicaid also translate to Medicare. Homecare is preferred
by patients, is clinically effective, and delivers great value for Americans' healthcare dollar. Secretary Leavitt
understands the dimensions of diseases that can be treated by homecare, such as Chronic Obstructive Pulmonary Disease (COPD),
which afflicts more than 14 million Americans. Treatment and prevention of this disease has been championed by Senator
Michael Crapo, chair of the Congressional COPD Caucus."



As Medicare grew rapidly over the last decade, Congress cut home health reimbursement in half after 1997, through to the
Balanced Budget Act. Medicare spending on home health as a percentage of total spending declined from seven percent in 1993
to four percent in 2003, even as total Medicare spending continued to escalate. The Medicare Modernization Act of 2003 also
required steep reimbursement cuts for a number of home medical services and equipment. According to a study released in May
2004 by the National Institute of Nursing Research, when elderly heart-failure patients receive specialized nursing care
throughout their hospital stay and at home following discharge, they have a better quality of life and fewer hospital
readmissions, resulting in a savings of nearly 38 percent to Medicare. Home health providers are implementing innovative
programs, targeting specific diseases such as congestive heart failure for intense management through a combination of
skilled nursing services and innovative technology, with great savings from avoided hospitalizations and emergency-room
visits.



"Because homecare now encompasses virtually every service short of surgery, homecare offers the White House and Congress a
great opportunity to reduce costs while expanding access to vital care for millions of Americans," Cox stated. "Homecare is
the solution."



AAHomecare is the only national association that represents every line of service in the homecare community, including home
health and home medical equipment providers, respiratory and infusion therapy, telemedicine, rehab and assistive technology,
and hospice. With more than 3,000 member locations, AAHomecare advances quality healthcare services where patients prefer
them - at home.



Michael Reinemer

Vice President, Communications

American Association for Homecare

625 Slaters Lane, Suite 200

Alexandria, VA 22314-1171

703-535-1881

aahomecare