Washington -- Legislation to eliminate the 15 percent payment reduction to the Medicare home health benefit -- which was not included in the Medicare, Medicaid and SCHIP Benefits Improvement and Protection Act of 2000 -- was introduced in the Senate. The reduction is scheduled to go into effect in October 2002.

Introduced by Sens. Susan Collins, R-Maine, Christopher Bond, R-Mo., Jack Reed, D-R.I., and John Kerry, D-Mass., the proposed Home Health Care Stability Act also would extend for two years the 10 percent add-on for rural home health agencies.

"Home health care is the key to fulfilling what is virtually a universal desire among seniors and those with disabilities — to remain independent and within the comfort of their own homes despite their health problems," Bond said in a written statement.

The home health industry has pushed for the elimination of the 15 percent reduction since it was enacted as part of the Balanced Budget Act of 1997. The industry contends the reduction will further decrease patient access to quality services because of the financial constraints the prospective payment system has placed on home health agencies.

American Association for Homecare president and chief executive officer Thomas Connaughton applauded the senators for introducing the bill. "We are encouraged that Congress has recognized the importance of eliminating the additional 15 percent cut in the home health benefit," Connaughton said. "This bill will address some of the devastating effects that the Balanced Budget Act of 1997 had upon the home care industry and the patients it serves."