ANNOUNCEMENT:

***On November 1, 2006, the Centers for Medicare & Medicaid Services (CMS) announced a 3.3 percent increase in Medicare payment rates to home health agencies for calendar year 2007. The home health prospective payment system (HH PPS) annual update will bring an estimated extra $410 million in wage adjusted payments to home health agencies next year. As part of this final rule, CMS is implementing pay-for-reporting provisions of the Deficit Reduction Act of 2005. In addition, CMS is implementing changes to Medicare payment for oxygen equipment and capped rental durable medical equipment due to the Deficit Reduction Act of 2005. The final rule changes how Medicare will pay for oxygen and oxygen equipment, as well as capped rental items, such as wheelchairs and hospital beds, and establishes new protections for beneficiaries who require these items. Oxygen and oxygen equipment and capped rental items are paid under the Medicare Part B durable medical equipment (DME) benefit. These changes will save beneficiaries and taxpayers money, while ensuring that beneficiaries get the items and services they need. ***