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CMS Issues Proposed Rule Modifying Home Health Payment System

 

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April 30, 2007

On April 27, 2007, the Centers for Medicare & Medicaid Services (CMS) issued a proposed rule providing its first significant modifications to the prospective payment system (PPS) for home health agencies since the system was first established in 2000. CMS touts the proposed changes as designed to ensure more appropriate payment for services provided by Medicare home health agencies, while establishing incentives for more efficient care for Medicare beneficiaries. This proposed rule also contains the annual update to the Medicare PPS payment rates for home health agencies. The proposed rule has been issued for public inspection and is scheduled to appear in the Federal Register on May 4, 2007.

This proposed rule proposes an update to the 60-day national episode rates and the national per-visit amounts under the current PPS, and would be effective on January 1, 2008. In addition, this proposed rule would establish new quality of care data collection requirements.

The proposed rule is available on the CMS website.

To access the CMS fact sheet and CMS' press release, click here.

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