tci Medicare Compliance & Reimbursement - 2004 Issue 23

HOME HEALTH: HHAs May Ring In '05 With 2.5-Percent Pay Hike

New PPS calendar pushes back updates, may save Medicare $90 million. Good news for home health agencies: Medicare intends to increase your payments by $270 million in 2005, according to a proposed rule in the June 2 Federal Register. According to the Centers for Medicare & Medicaid Services, the government expects to save $90 million in 2005 by changing the home health prospective payment system to a calendar-year update cycle instead of a fiscal-year cycle. Therefore, you should see the 2.5 percent pay hike on Jan. 1, 2005 instead of Oct. 1, 2004. The pay increase is based...

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