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HRD-80-84 1 (1980-05-08)

handle is hein.gao/gaobabanx0001 and id is 1 raw text is: V'ft to be released outside A0 Without a nroval by the Office of Congressional G.Oa Relations. United States General Accounting Ofice Human Resources Washing on, DC 20548 RELEASED Division B- 19 735 May 8, 1980 The Honorable Sam M. Gibbons Chairman, Subcommittee on Oversight 6/10 Committee on Ways and Means House of Representatives Dear Mr. Chairman: Subject: Ealuation of the Health Care Financing 4 Administration's Propose: Home Health Care Reimbursement Limits(HRD-80-84) This letter is in response to the Subcommittee's con- cerns that the limits proposed on February 15, 1980, by the Health Care Financing Administration (HCFA) on home health care reimbursements are too high. Specifically, we were asked to review (1) the accuracy of the data base used to develop the limits, (2) the methodology used in developing the limits, (3) the accuracy of HCFA's estimated savings, and (4) alternative methods HCFA could use in improving existing limits and/or developing subsequent home health reimbursement limits. We identified a number of problems with the data base and procedures HCFA used in computing the proposed home health care reimbursement limits. Under the metholodgy used, relatively minor changes in (1) the number of home health agencies included in the data base or (2) the data themselves can result in substantial changes to the computed reimburse- ment limits. Also, small changes in the level at which the reimbursement limits are set can have a relatively large impact on the savings resulting from implementation of the limits. For example, lowering the limits by 10 cents would result in increasing the savings by over $200,000, using the methodology HCFA applied to estimate the savings that would be realized if the proposed limits were implemented. (106185) 112293

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