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GAO-14-240R 1 (2013-12-17)

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G     A              U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-325362


December 17, 2013

The Honorable Max Baucus
Chairman
The Honorable Orrin G. Hatch
Ranking Member
Committee on Finance
United States Senate

The Honorable Fred Upton
Chairman
The Honorable Henry A. Waxman
Ranking Member
Committee on Energy and Commerce
House of Representatives

The Honorable Dave Camp
Chairman
The Honorable Sander M. Levin
Ranking Member
Committee on Ways and Means
House of Representatives

Subject: Department of Health and Human Services, Centers for Medicare & Medicaid Services:
       Medicare and Medicaid Programs; Home Health Prospective Payment System Rate
       Update for CY 2014, Home Health Quality Reporting Requirements, and Cost
       Allocation of Home Health Survey Expenses

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Health and Human Services, Centers for Medicare &
Medicaid Services (CMS) entitled Medicare and Medicaid Programs; Home Health Prospective
Payment System Rate Update for CY 2014, Home Health Quality Reporting Requirements, and
Cost Allocation of Home Health Survey Expenses (RIN: 0938-AR52). We received the rule on
December 2, 2013. It was published in the Federal Register as a final rule on December 2,
2013. 78 Fed. Reg. 72,256.

The final rule will update the Home Health Prospective Payment System (HH PPS) rates,
including the national, standardized 60-day episode payment rates, the national per-visit rates,
the low-utilization payment adjustment (LUPA) add-on, and the non-routine medical supply
(NRS) conversion factor under the Medicare prospective payment system for home health
agencies (HHAs), effective January 1, 2014. As required by the Affordable Care Act, this rule
establishes rebasing adjustments, with a 4-year phase-in, to the national, standardized 60-day
episode payment rates; the national per-visit rates; and the NRS conversion factor. In addition,
this final rule will remove 170 diagnosis codes from assignment to diagnosis groups within the


GAO-14-240R

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