United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 1998_register executive 2010-09-24 article Part II Rules and Regulations D09002ee1be0072d0 D09002ee1be0073c5 United States Medicare and Medicaid Programs, Surety Bond and Capitalization originator org United States Government Agency or Subagency United States Department of Health and Human Services originator org United States Government Agency or Subagency United States Health Care Financing Administration originator org United States Government Agency or Subagency The Balanced Budget Act of 1997 (BBA '97) requires each home health agency (HHA) to secure a surety bond in order to participate in the Medicare and Medicaid programs. This requirement applies to all participating Medicare and Medicaid HHAs, regardless of the date their participation began. This final rule with comment period requires that each HHA participating in Medicare must obtain from an acceptable authorized Surety a surety bond that is the greater of $50,000 or 15 percent of the annual amount paid to the HHA by the Medicare program, as reflected in the HHA's most recently accepted cost report. The BBA '97 also requires that provider agreements be amended to incorporate the surety bond requirement; this rule deems such agreements to be amended accordingly. The BBA '97 prohibits payment to a State for home health services under Medicaid unless the HHA has furnished the State with a surety bond that meets Medicare requirements. This final rule with comment period requires that, in order to participate in Medicaid, each HHA must obtain from an acceptable authorized Surety, a surety bond that is the greater of $50,000 or 15 percent of the annual Medicaid payments made to the HHA by the Medicaid agency for home health services for which Federal Financial Participation (FFP) is available. In addition to the surety bond requirement, an HHA entering the Medicare or Medicaid program on or after January 1, 1998 must demonstrate that it actually has available sufficient capital to start and operate the HHA for the first 3 months. Undercapitalized providers represent a threat to the quality of patient care. 63 FR 292 https://www.govinfo.gov/app/details/FR-1998-01-05/97-34220 97-34220 fr05ja98-12 RIN 0938-AI31 4120-01-P HCFA-1152-FC https://www.govinfo.gov/app/details/FR-1998-01-05/97-34220 https://www.govinfo.gov/content/pkg/FR-1998-01-05/html/97-34220.htm https://www.govinfo.gov/content/pkg/FR-1998-01-05/pdf/97-34220.pdf 64 p. 292 355 63 FR 292 Title 42 Part 413 42 CFR Part 413 Title 42 Part 440 42 CFR Part 440 Title 42 Part 441 42 CFR Part 441 Title 42 Part 489 42 CFR Part 489 RIN 0938-AI31 Medicare and Medicaid Programs; Surety Bond and Capitalization Requirements for Home Health Agencies; Federal Register Vol. 63, Issue RULE 97-34220 II Medicare and Medicaid Programs, Surety Bond and Capitalization DEPARTMENT OF HEALTH AND HUMAN SERVICES Health Care Financing Administration 1998-01-01 HCFA-1152-FC 4120-01-P 97-34220 Final rule with comment period.

The Balanced Budget Act of 1997 (BBA '97) requires each home health agency (HHA) to secure a surety bond in order to participate in the Medicare and Medicaid programs. This requirement applies to all participating Medicare and Medicaid HHAs, regardless of the date their participation began. This final rule with comment period requires that each HHA participating in Medicare must obtain from an acceptable authorized Surety a surety bond that is the greater of $50,000 or 15 percent of the annual amount paid to the HHA by the Medicare program, as reflected in the HHA's most recently accepted cost report. The BBA '97 also requires that provider agreements be amended to incorporate the surety bond requirement; this rule deems such agreements to be amended accordingly. The BBA '97 prohibits payment to a State for home health services under Medicaid unless the HHA has furnished the State with a surety bond that meets Medicare requirements. This final rule with comment period requires that, in order to participate in Medicaid, each HHA must obtain from an acceptable authorized Surety, a surety bond that is the greater of $50,000 or 15 percent of the annual Medicaid payments made to the HHA by the Medicaid agency for home health services for which Federal Financial Participation (FFP) is available. In addition to the surety bond requirement, an HHA entering the Medicare or Medicaid program on or after January 1, 1998 must demonstrate that it actually has available sufficient capital to start and operate the HHA for the first 3 months. Undercapitalized providers represent a threat to the quality of patient care.

Effective Date: January 1, 1998. Ralph Goldberg (410) 786-4870 (Medicare Surety Bond Provision); John Eppinger (410) 786-4518 (Medicare Capitalization Provision); Mary Linda Morgan (410) 786-2011 (Medicaid Provisions). Vol. 63, no. 2 Office of the Federal Register, National Archives and Records Administration 1998-01-05 continuing daily deposited born digital 270 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-1998-01-05 P0b002ee180a50261 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr05ja98 https://www.govinfo.gov/app/details/FR-1998-01-05 https://www.govinfo.gov/content/pkg/FR-1998-01-05/pdf/FR-1998-01-05.pdf fdlp 139 397 DGPO 2010-09-24 2023-05-06 FR-1998-01-05 machine generated eng FR FR-1998-01-05 63 2