Medicare covers and pays for a range of health care services, equipment,  and drugs, and uses various payment systems. The  home infusion provider may provide any necessary skilled nursing  services directly or may contract with a home health agency to do so. The benefit would have provided  comprehensive coverage of all the components of home infusion therapy,  including intravenous drugs, equipment and supplies, and skilled nursing  services when needed. The extent of coverage depends on whether the  beneficiary is homebound, as well as factors related to the beneficiary’s  condition and treatment needs. Other non-homebound beneficiaries have little or  no coverage for home infusion therapy under Medicare FFS. Some Homebound Beneficiaries Have Comprehensive Coverage of Home Infusion Therapy, and Others Have Limited Coverage

Some Medicare FFS beneficiaries who are homebound—that is, generally  confined to their homes and in need of nursing care on an intermittent  basis—have coverage for all components of home infusion therapy. In addition, infusion drugs may  be covered for beneficiaries who are enrolled in Part D plans or have other  prescription drug coverage. 2.) Most of these insurers use a combination of  payment mechanisms that include a fee schedule for infusion drugs, a fee  schedule for nursing services, and a bundled payment per day for therapy  for all other services and supplies provided. Commercial Health Plans and Some MA Plans Provide Comprehensive Coverage of Home Infusion Therapy

The health insurers in our study told us that they provide comprehensive  coverage of home infusion therapy under all of their commercial health  plans and some MA plans. Nationwide, nearly one out of every five MA beneficiaries has  comprehensive coverage of home infusion therapy through a bundle that  includes drugs and associated supplies and services. CMS allows MA plans  to cover infusion drugs as a Part C mandatory supplemental benefit—a  benefit not covered by Medicare FFS, but available to every beneficiary in  the plan—to better coordinate benefits for home infusion therapy under  Parts C and D. According to CMS, allowing MA plans to cover infusion  drugs in this way would also facilitate access to home infusion therapy— including drugs as well as the other needed components—and obviate the  need for more costly hospital stays and outpatient services. 3.) The health insurers in our study reported using these pricing data in  different ways. Most of the health insurers we spoke with also use a fee schedule to pay  for nursing services. Health Insurers Employ Standard Industry Practices to Manage Utilization of Home Infusion Therapy and Ensure Quality

Most of the health insurers in our study—both commercial and MA  plans—use standard industry practices to manage utilization of home  infusion and ensure quality of services for their members. None of the  insurers reported significant problems with improper payments for home  infusion therapy services. The plan typically requires  providers to submit patient information in advance to support a request  for coverage and receive payment authorization. These  include developing a limited provider network of infusion pharmacies and  home health agencies, requiring provider accreditation, coordinating care  among providers, and monitoring patient complaints. Conclusions

Due to the limited coverage of home infusion therapy under Medicare FFS  and some MA plans, non-homebound beneficiaries would need to obtain  treatment in alternate and potentially more costly settings—such as a  hospital, outpatient department, or physician’s office—to have all of the  components of infusion therapy covered. HHS Comments

HHS stated that Medicare covers infusion therapy in the home for  beneficiaries who are receiving the home health benefit; other  beneficiaries have access to infusion therapy in alternate settings, such as  hospitals, outpatient departments, and physician offices.
Why GAO Did This Study

Infusion therapy--drug treatment generally administered intravenously--was once provided strictly in hospitals. However, clinical developments and emphasis on cost containment have prompted a shift to other settings, including the home. Home infusion requires coordination among providers of drugs, equipment, and skilled nursing care, as needed. GAO was asked to review home infusion coverage policies and practices to help inform Medicare policy. In this report, GAO describes (1) coverage of home infusion therapy components under Medicare fee-for-service (FFS), (2) coverage and payment for home infusion therapy by other health insurers--both commercial plans and Medicare Advantage (MA) plans, which provide a private alternative to Medicare FFS, and (3) the utilization and quality management practices that health insurers use with home infusion therapy benefits. To do this work, GAO reviewed Medicare program statutes, regulations, policies, and benefits data. GAO also interviewed officials of five large private health insurers that offered commercial and MA plans.

What GAO Found

The extent of Medicare FFS coverage of home infusion therapy depends on whether the beneficiary is homebound, as well as other factors related to the beneficiary's condition and treatment needs. Some Medicare FFS beneficiaries who are homebound have comprehensive coverage of home infusion therapy, which includes drugs, equipment and supplies, and skilled nursing services when needed. For non-homebound beneficiaries with particular conditions needing certain drugs and equipment, Medicare FFS coverage of home infusion is limited to the necessary drugs, equipment, and supplies, and excludes nursing services. For other non-homebound beneficiaries, Medicare FFS coverage is further limited; infusion drugs may be covered for those enrolled in a prescription drug plan, but neither equipment and supplies nor nursing services are covered. These non-homebound beneficiaries would need to obtain infusion therapy in a hospital, nursing home, or physician's office to have all therapy components covered. The health insurers in GAO's study provide comprehensive coverage of home infusion therapy under all of their commercial plans. Some insurers also provide comprehensive coverage under their network-based MA plans, which may provide benefits beyond those required under Medicare FFS. Nationwide, nearly one out of every five MA beneficiaries has comprehensive coverage through an MA plan that has chosen to cover home infusion therapy as a supplemental benefit. To pay providers of home infusion therapy, most of the insurers in GAO's study use a combination of payment mechanisms. These include a fee schedule for infusion drugs, a fee schedule for nursing services, and a bundled payment per day of therapy for all other services and supplies. Most of the health insurers in GAO's study use standard industry practices to manage utilization of home infusion therapy and ensure quality of care. Specifically, most health insurers require that infusion providers submit patient information in advance to support a request for coverage and receive payment authorization. Also, health insurers may review samples of claims postpayment to determine if claims were billed and paid appropriately. None of the insurers in GAO's study stated that they have had significant problems with improper payments or quality for home infusion therapy services. In addition, health insurers reported taking various steps to ensure the quality of services delivered in the home. These included developing a limited provider network of infusion pharmacies and home health agencies, requiring provider accreditation, coordinating care among providers, and monitoring patient complaints. In commenting on a draft of this report, the Department of Health and Human Services stated Medicare covers infusion therapy at home for beneficiaries receiving the home health benefit, while other beneficiaries have access to infusion therapy in alternate settings. The Department suggested GAO reword its recommendation to clarify that a change to Medicare benefits would require statutory authority, and GAO has done so.