Addus: Proposed HHS Rule Contradicts Objectives

 Addus HomeCare Corporation (Nasdaq: ADUS), a provider of home care services, commented on the proposed new rule announced last week by the Biden Administration’s Department of Health and Human Services (HHS) known as "Assuring Access to Medicaid Services." The proposed rule is in addition to those adopted under the Obama Administration in 2016 and incorporates new requirements covering additional Medicaid Services, including Home and Community-Based Services (HCBS). The proposed rule is not final and is subject to a sixty-day public comment period.

The proposed rule has a stated goal of improving access to services for Medicaid beneficiaries. However, one part of the rule proposes that state Medicaid agencies be required to provide assurances that a minimum of 80% of Medicaid payments for personal care and similar services be spent on compensation to direct care workers. We believe the specific approach and the proposed minimum threshold would be contradictory to the goal of assuring access to Medicaid services, which we fully support, due to the wide variance in state waiver programs which directly impacts the administrative burden in individual states. We also believe it may adversely affect many smaller providers. Those operating in states with larger rural populations may be unable to continue providing care due to the significant administrative burden required to provide quality, regulatory compliant HCBS services.

https://finance.yahoo.com/news/addus-homecare-comments-department-health-120000000.html