HCFA

Pursuant to a legislative requirement, GAO reviewed the Health Care Financing Administration's (HCFA) new rule on the Medicare Program's schedule of limits on home health agency (HHA) costs per visit for cost reporting periods beginning on or after October 1, 1997. GAO noted that: (1) the notice sets forth a revised schedule of limits on HHA costs that may be paid under the Medicare Program for cost reporting periods beginning on or after October 1, 1997; (2) in addition, the notice provides, in accordance with the Balanced Budget Act of 1997, that: (a) there be no changes in the home health per visit limits for cost reporting periods beginning on or after July 1, 1997, and before October 1, 1997; (b) the establishment of the cost per visit limitations for cost reporting periods beginning on or after October 1, 1997, be based on 105 percent of the median of the labor-related and nonlabor per visit costs for freestanding HHAs; (c) there be no updates in the home health costs limits for cost reporting periods beginning on or after July 1, 1994, and before July 1, 1996; and (d) the wage index value that is applied to the labor portion of the per visit limitations be based on the geographical area in which the home health service is located; and (3) HCFA complied with applicable requirements in promulgating the rule.