The US Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services (CMS) released proposed updates to its Calendar Year (CY) 2017 Home Health Prospective Payment System (HH PPS) in the July 5, 2016, Federal Register. In addition to updating HH PPS rates for the CY 2017 wage index and case-mix weights, the proposal implements the final year of the four-year phase-in of the rebasing adjustments to the national standardized 60-day episode payment rates, the national per-visit rates and the non-routine medical supplies conversion factor. CMS also proposes changes to the methodology used to calculate outlier payments and changes in payment for Negative Pressure Wound Therapy (NPWT) performed using a disposable device for patients under a home health plan of care. The proposed rule also would implement several quality measure updates, as well as changes to CMS’s Home Health Value-Based Purchasing (HH VBP) Model.

CMS estimates that the combined effect of all the policies in the CY 2017 proposal, affecting more than 11,000 home health agencies (HHAs), would result in a 1 percent decrease in payments (i.e., $180 million) to HHAs over CY 2017. Comments on the proposed rule are due by 5 pm EDT on August 26, 2016.