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Projected Savings and Workforce Transformation from Converting Independence at Home to a Medicare Benefit
Author(s) -
Kinosian Bruce,
Taler George,
Boling Peter,
Gilden Dan
Publication year - 2016
Publication title -
journal of the american geriatrics society
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.992
H-Index - 232
eISSN - 1532-5415
pISSN - 0002-8614
DOI - 10.1111/jgs.14176
Subject(s) - medicine , workforce , independence (probability theory) , gerontology , transformation (genetics) , economic growth , statistics , mathematics , economics , biochemistry , chemistry , gene
The Independence at Home ( IAH ) Demonstration Year 1 results have confirmed earlier studies that showed the ability of home‐based primary care ( HBPC ) to improve care and lower costs for Medicare's frailest beneficiaries. The first‐year report showed IAH savings of 7.7% for all programs and 17% for the nine of 17 programs that surpassed the 5% mandatory savings threshold. Using these results as applied to the Medicare 5% claims file, the effect of expanding HBPC to the 2.2 million Medicare beneficiaries who are similar to IAH demonstration participants was projected. Total savings ranged from $12 billion to $53 billion depending on the speed and extent of dissemination of HBPC among this IAH ‐like population. Using a fixed growth rate, as hospitalists experienced in their first decade, 35% coverage would be achieved at the end of 10 years, with total 10‐year savings through IAH reaching $37.5 billion and $17.3 billion accruing to the Centers for Medicare and Medicaid Services as a net reduction in overall expenditures, with $12.6 billion from Medicare Parts A and B savings.