AAHCM Applauds Year 5 Results of Medicare Independence at Home (IAH) Demonstration


Newswise — The Academy is pleased to share that the Independence at Home (IAH) Demonstration Year 5 practice expenditures were $33.5 million below Medicare spending targets. Each year the IAH Demonstration increases not only the number of beneficiaries served under the program (increasing access to HBPC services for beneficiaries), but also the savings to the Medicare program. Over the 5 years of the demonstration, the IAHC practices have generated a total of about $100 million in savings and high-quality care for Medicare. These results highlight the value of a home-based primary care (HBPC) model to serve complex, frail elders, with an emphasis on a high-touch and high-tech mobile team care.

IAH Background

The IAH Demonstration began in 2012 to test a delivery and payment model for HBPC teams that focus on caring for ill and disabled patients in the home. Initially a 3-year demonstration, the IAH Demonstration has been extended twice by Congress and CMS due to successful saving results. IAH tests whether accessible primary care for high-need patients can improve patient and family experience while reducing total costs and hospital admissions. IAH practices care for patients who meet the following criteria: have 2 or more serious chronic conditions; need assistance with 2 or more Activities of Daily Living (ADLs); and have had a hospitalization and received post-acute skilled nursing or rehabilitation services in the past 12 months.

Year 5 IAH Results

A total of 14 practices participated in the IAH Demonstration in Year 5, providing care to 12,360 beneficiaries. In Year 5, CMS found that practices in the IAH Demonstration reduced expenditures for beneficiaries by 8.4%, with Year 5 average savings coming to about $2,711 per beneficiary per year (PBPY).

Theresa Soriano, President of AAHCM, notes, “The Academy continues to salute the accomplishments of the IAH practices and saving the Medicare program $100 million, demonstrating the value and impact of high-quality home-based primary care.”

There is even further potential for savings but the number of beneficiaries in the program is capped—10,000 for Years 1-5 and 15,000 for Years 6-7.

IAH Demonstration Outlook

The IAH Demonstration is now in Year 6, which will end in December 2019. Year 7 will begin January 2020 and run through December 2020. Years 6 and 7 results will be shared in 2020 and 2021. Additionally, there are currently two pieces of legislation in the House and Senate, the Independence at Home Act of 2019 (S. 1202), which would convert the demonstration into a national program, and the Independence at Home Demonstration Act of 2019 (H.R. 3644), which would extend the IAH Demonstration for an additional three years, through the end of December 2023.

Given the high-quality results and the costs savings for Medicare, the IAH Demonstration has proven to be one of the most successful new clinical and payment models supported by CMMI and CMS.

For more information, please see the CMMI IAH Demonstration page or visit the AAHCM website at www.aahcm.org. Media Contact: Ray Quintero, Strategic Advisor, American Academy of Home Care Medicine, 202-370-3668.

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