Medicare issues home health PPS notice

The Centers for Medicare & Medicaid Services (CMS) issued a notice to update the Home Health Prospective Payment System (HH PPS) for calendar year 2009.

Medicare payments to home health agencies will increase by an estimated additional $30 million next year as a result of a 2.9% increase in the annual market basket calculation of the cost of goods and services included in providing services under the HH PPS. The update also accounts for a 2.75% reduction to the HH PPS rates (the second year of a four-year, phased-in reduction) to account for the changes in case-mix that are unrelated to patients' health status, and an updated 2009 wage index.

A copy of the notice (CMS-1555-N) is available on the CMS web site at