How to Calculate Mileage for Home Health Care. The Centers for Medicare and Medicaid Services (CMS) has released a new ruling that will change the way home health care agencies calculate mileage reimbursement for services.
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Defining Home Health Care
Home health care is defined as medically necessary skilled nursing care and/or therapy services that are provided by a home health care agency to patients in their place of residence. The care is prescribed by a physician and is intermittent, part-time, or full-time. Patients must be homebound, which means that their condition must limit their ability to travel outside of the home. In some cases, patients who are not homebound may still be eligible for home health care services if they meet other criteria.
There are two main types of home health care services: skilled nursing care and rehabilitative therapy services. Skilled nursing care is provided by registered nurses (RNs), licensed practical nurses (LPNs), or certified nurse assistants (CNAs) who have received specialized training. Rehabilitative therapy services are provided by physical therapists (PTs), occupational therapists (OTs), and speech therapists (STs) who have also received specialized training.
Patients who receive home health care services typically have a chronic condition such as congestive heart failure, COPD, diabetes, or Alzheimer’s disease. They may also be recovering from a surgery or hospital stay.
The Need to Calculate Mileage
If you are providing home health care to a patient, it is important to calculate the mileage for your services. This is necessary in order to get paid for your work. In addition, calculating mileage can help you keep track of your expenses and budget for your business.
There are a few different ways to calculate mileage for home health care. The most common method is to use a standard mileage rate, which is set by the IRS. For 2020, the standard mileage rate is $0.58 per mile.
However, you may also choose to use the actual expense method, which involves calculating the actual costs of operating your vehicle. This includes things like gas, oil, maintenance, and depreciation. If you use this method, you will need to keep track of all of your expenses in order to get an accurate calculation.
Whatever method you choose, it is important to be accurate in your calculations. This will ensure that you are getting paid correctly and that you are not overspending on business expenses.
The Reimbursement Rate for Home Health Care
The federal government establishes a reimbursement rate for home health care services. This rate is used by both Medicare and Medicaid to determine how much they will reimburse health care providers for services rendered. The reimbursement rate is also used by many private insurance companies as a guideline for setting their own rates.
The calculation of the reimbursement rate is complex, and it takes into account a number of factors, including the geographic area in which the services are rendered, the type of services provided, the number of patients served, and the training and experience of the staff providing the services. In general, however, the reimbursement rate is based on a per-visit or per-hourly rate.
The National Association for Home Care & Hospice (NAHC) provides an online calculator that can be used to estimate the reimbursement rate for home health care services. The calculator includes a list of common service codes and their corresponding reimbursements rates. It also allows you to enter your own service codes and rates.
How to Calculate Mileage for Home Health Care
The Centers for Medicare and Medicaid Services (CMS) reimburse home health care agencies for mileage driven to and from patient homes. To calculate mileage, home health care agencies must use either the Google Maps mileage calculator or the MapQuest mileage calculator.
To use the Google Maps mileage calculator, home health care agencies must enter the start and end addresses of patient visits into the “Get Directions” feature. Once the start and end addresses have been entered, click on the “Get Directions” button. A new page will pop up with step-by-step directions. At the bottom of this page, there will be a “Total Distance” field that displays the mileage driven to and from the patient’s home.
To use the MapQuest mileage calculator, home health care agencies must enter the start and end addresses of patient visits into the “Start Address” and “End Address” fields. Once the start and end addresses have been entered, click on the “Calculate Route” button. A new page will pop up with turn-by-turn directions. At the bottom of this page, there will be a “Total Distance” field that displays the mileage driven to and from the patient’s home.
Tips for Maximizing Reimbursement
There are a few things to keep in mind when calculating mileage for home health care reimbursement. First, make sure you are using the most recent mileage rate set by the IRS. For 2019, the standard mileage rate is $0.58 per mile.
Next, calculate your total miles driven for the year. This includes all miles driven for business purposes, whether it is to and from appointments or running errands for your business. If you use your personal vehicle for business, you can deduct the business portion of your total mileage on your taxes.
Once you have your total miles driven, multiply that number by the standard mileage rate to get your total reimbursement amount. For example, if you drove 3,000 miles for business during the year, your reimbursement would be $1,740 (3,000 x $0.58).
Finally, keep careful records of all your mileage throughout the year so that you can easily calculate your reimbursement at tax time. This includes keeping track of all appointment dates and locations, as well as any other business-related errands you may have run.
To recap, the method for calculating mileage for home health care reimbursement purposes is as follows:
1. Determine the shortest distance between two points using Google Maps, MapQuest, or a similar website. This is your “as the crow flies” or “point to point” distance.
2. Take this number and multiply it by 1.5 to account for traffic, weather conditions, etc. This is your “drive time” distance.
3. Multiply your “drive time” distance by $0.545 per mile to calculate your reimbursement rate.
4. Keep track of your receipts for gas and other car-related expenses, as you may be able to deduct these on your taxes.
We hope this article was helpful! If you have any further questions about home health care or calculating mileage, please don’t hesitate to reach out to us at [PHONE NUMBER].