HOME HEALTH: PPS Reshuffling Will Affect HHA Rates In 2005

Why This Topic Matters

The policy changes described affect how home health agencies are paid under Medicare and may influence reimbursement levels, case mix, and financial exposure for higher-cost patients. Understanding the proposed updates helps providers and billing professionals anticipate operational and revenue impacts.

Article Sections

1. Outlier payment policy

   Discusses proposed changes to the outlier portion of the home health PPS and the general financial effect on agencies serving higher-cost patients.

2. Rates and dates

   Covers the annual update timing for home health PPS rates and the general structure of the 2005 base payment update.

3. Labor portion

   Describes proposed changes to the labor-related share of the PPS rate and how those changes interact with wage index adjustments.

4. Wage index

   Explains the timing-related update to the wage index used for home health PPS rate calculation and the general reason for the change.