Medicare Program; Home Health Prospective Payment System Rate Update for Calendar Year 2007 & Deficit Reduction Act of 2005 Changes to Medicare Payment for Oxygen Equipment & Capped Rental Durable Medical Equipment; Final Rule

Home health agencies (HHA) that submit required quality data will receive payments based on the full home health market basket update of 3.3% for calendar year (CY) 2007. If a HHA does not submit quality data, the home health market basket update will be reduced by two percentage points to 1.3% for CY 2007. Rural HHAs that submit quality data will receive an estimated average 3.6% increase in payment. Urban HHAs that submit quality data will experience an estimated 3.1% increase in payments.

The final rule also changes how Medicare will pay for oxygen and oxygen equipment, as well as capped rental items, such as wheelchairs and hospital beds, and establishes new protections for beneficiaries who require these items. The final rule implements Section 5101 of the DRA that requires suppliers to transfer title of oxygen equipment to the beneficiary after 36 months of rental payments and capped rental items after 13 months.