Summary

GAO reviewed the Department of Health and Human Services, Centers for Medicare and Medicaid Services' (CMS) new rule on home health prospective payment system rates for 2005. GAO found that (1) the rule would set forth an update to the 60-day national episode rates and the national per-visit amounts under the Medicare prospective payment system for home health agencies, rebase and revise the home health market basket to ensure it continues to adequately reflect the price changes of efficiently providing home health services, and revise the fixed dollar loss ratios, which is use in the calculation of outlier payments; and (2) CMS complied with applicable requirements is promulgating the rule.