tci Medicare Compliance & Reimbursement - 2004 Issue 12

Home Care - No Fooling: HHA Payment Cuts Due April 1

HHAs should end episodes now to secure higher payments.Good news for rural agencies but bad news for everyone else is coming next month. A 0.8-percent reduction to the home health agency base episode rate will take effect April 1, as called for in the Medicare Modernization Act passed in December. It equals about $17 per episode, before adjustment for wage index.The payment cut, which is achieved through a reduction to the market basket index (an inflation update factor), generally has been seen as the home care industry's trade-off for not having a copayment for the...

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