U.S. plans easing rules for home care for the poor

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The U.S. Centers for Medicare and Medicaid Services said thousands of patients in Medicaid, the federal plan for the needy, could now have the option of home-based care, rather than care in an institutional setting.

WASHINGTON (Reuters) - The federal agency that provides health insurance for the poor proposed on Monday to loosen payment rules for home-based health services.

The U.S. Centers for Medicare and Medicaid Services said thousands of patients in Medicaid, the federal plan for the needy, could now have the option of home-based care, rather than care in an institutional setting.

Previously, to qualify for the benefit, individuals had to be "at imminent risk" of institutionalization, CMS said.

The new rule, which is subject to a 2-month comment period, eliminates that requirement and lets states cover patients with incomes of no greater than 150 percent of the federal poverty level.

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Home health care companies include Gentiva Health Services Inc and Amedisys Inc.

Whether these companies want the business is another matter, according to analysts, because payment rates may lag those from commercial payers and Medicare, the separate federal program for the elderly.

(Reporting by Kim Dixon; Editing by Tim Dobbyn)