CMS-1648-F

The Centers for Medicare & Medicaid Services (CMS) issued a final rule (CMS-1648-F) that updates the Medicare Home Health Prospective Payment System (HH PPS) rates and wage index for calendar year (CY) 2017. In the CY 2017 final rule, CMS implements the fourth and final year of the four year phase-in of the rebasing adjustments to the HH PPS payment rates as required by the Affordable Care Act. In addition, CMS will decrease the national, standardized 60-day episode payment amount by 0.97 percent in CY 2017 to account for nominal case-mix growth between CY 2012 and CY 2014, which was not accounted for in the rebasing adjustments finalized in the CY 2014 HH PPS final rule. CMS is also changing the methodology used to calculate outlier payments to a per-unit approach. The CY 2017 final rule will result in a 0.7 percent decrease (-$130 million) in payments to HHAs.
As required by the Consolidated Appropriations Act, 2016, CMS is implementing a separate payment for furnishing Negative Pressure Wound Therapy (NPWT) using a disposable device for patients under a home health plan of care. CMS also provides an update to the Home Health Quality Reporting Program and an update regarding public reporting of performance under the HH VBP Model.