CMS Proposes Payment Changes for Medicare Home Health Agencies for 2014 [06-28-13]

Filed under: Industry Updates — Editor @ 4:11 pm

cmsannouncementOn June 27, CMS announced proposed changes to the Medicare home health prospective payment system (“HH PPS”) for calendar year (“CY”) 2014. CMS projects that Medicare payments to home health agencies in CY 2014 will be reduced by 1.5%, or $290 million relative to CY 2013, based on the proposed policies.

The rule proposes a reduction to the national, standardized 60-day episode rate of 3.5% in each year CY 2014 through CY 2017. The proposed national, standardized 60-day episode payment for CY 2014 is $2,860.20. The proposed rates do not include the effect of the 2% payment reduction that began April 1, 2013 as a result of the sequester.

The final regulation is due out in late October, and insiders believe it could be slightly lower than the proposed rule. CMS will accept comments on the proposed rule until August 26, 2013.

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