Tuesday, November 01, 2011 CMS Issues Final Rule for 2012 Medicare HH Payment Payments to home health agencies (HHAs) are estimated to decrease by approximately 2.31% or $430 million in Calendar Year (CY) 2012, the net effect of a 1.4% payment update, the wage index update, and the case-mix coding adjustment, according to a final rule issued yesterday by the Centers for Medicare & Medicaid Services (CMS) that updates the home health prospective payment system (HH PPS) rates effective January 1, 2012. The Affordable Care Act applies a 1% point reduction to the CY 2012 home health market basket amount. As the CY 2012 market basket is equal to 2.4%, the payment update for HHAs in CY 2012 will be 1.4%. CMS also reduced HH PPS rates in CY 2012 to account for additional growth in aggregate case-mix that is unrelated to changes in patients' health status. CMS has finalized a 3.79% reduction to the home health PPS rates for CY 2012 and an additional 1.32% reduction for CY 2013. This rule also finalizes structural changes to the HH PPS by removing 2 hypertension codes from the case-mix system, lowering payments for high therapy episodes, and recalibrating the HH PPS case-mix weights to ensure that these changes result in the same amount of total aggregate payments. These changes are intended to increase payment accuracy and reduce the growth in aggregate case-mix that is unrelated to changes in patients’ health status. Under current Medicare policy, a certifying physician or an allowed non-physician practitioner must see a patient prior to certifying a patient as eligible for the home health benefit. The rule also finalizes added flexibility to allow physicians who cared for the patient in an acute or post-acute facility to inform the certifying physician of their encounters with the patient in order to satisfy the requirement. Additionally, the rule describes planned improvements to the home health publicly reported quality measures. Look for APTA's highlights document on the rule tomorrow. This article was updated at 4:16 pm to reflect when APTA's highlights document will be available.