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HRD-80-85 1 (1980-05-08)

handle is hein.gao/gaobabaqe0001 and id is 1 raw text is: RELEASED PF TRICTFn Not to be released outz.ds-GAO without aMroval by the Office of Congressional GAO RelatinS* United States General Accounting Office Human Resources Washington, DC 20548 Division B-198735 0May 8, 1980 The Honorable Bob Packwood United States Senate Dear Senator Packwood: Subject: Ealuation of the Health Care Financing Administration's Proposed Home Health Care Cost Limi _J(HRD-80-85) This letter is a partial response to your concerns that the Health Care Financing Administration's (HCFA's) Febru- ary 15, 1980, proposed revisions to the home health care reimbursement limits may be too high. Specifically, you asked us to review (1) the types of cost reports used to develop the data base, (2) the adequacy of the data base used to develop the limits, (3) the methodology used in developing the limits, (4) the reasons set forth by HCFA for increasing the cost limits, (5) alternative methods HCFA could use to determine a more equitable reimbursement system, and (6) the charges made by private firms to provide similar services. 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 methodology 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) 112506

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