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<classification authority="sudocs">GA 1.13:GAO-02-663</classification>
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 <subject>Cost analysis</subject>
 <subject>Health care costs</subject>
 <subject>Health care programs</subject>
 <subject>Home health care services</subject>
 <subject>Managed health care</subject>
 <subject>Overpayments</subject>
 <subject>Medicare Interim Home Health Payment</subject>
 <subject>System</subject>
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<titleInfo>
 <title>Medicare Home Health Care: Payments to Home Health Agencies Are Considerably Higher than Costs</title>
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<abstract>The Balanced Budget Act of 1997 significantly changed Medicare&apos;s
home health care payments to home health agencies (HHAs). Under a
prospective payment system (PPS), HHAs are paid a fixed amount,  
adjusted for beneficiary care needs, for providing up to 60 days 
of care---termed a &quot;home health episode.&quot;  The act also imposed  
new interim payment limits to moderate spending until the PPS	 
could be implemented. Although PPS was designed to lower Medicare
spending below what it was under the interim system, GAO found	 
that Medicare&apos;s payments for full home health care episodes were 
35 percent higher than estimated in the first six months of 2001.
These disparities indicate that Medicare&apos;s PPS overpays for	 
services actually provided, although some HHAs facing		 
extraordinary costs not accounted for by the payment system may  
be financially disadvantaged.</abstract>
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<subject>
 <topic>Cost analysis</topic>
 <topic>Health care costs</topic>
 <topic>Health care programs</topic>
 <topic>Home health care services</topic>
 <topic>Managed health care</topic>
 <topic>Overpayments</topic>
 <topic>Medicare Interim Home Health Payment</topic>
 <topic>System</topic>
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 <titleInfo>
  <title>United States Statutes at Large</title>
  <partNumber>Volume 111 Page 251</partNumber>
  <partNumber>Volume 111 Page 467</partNumber>
</titleInfo>
 <identifier type="Statute citation">111 Stat. 251</identifier>
 <identifier type="Statute citation">111 Stat. 467</identifier>
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  <title>United States Statutes at Large</title>
  <partNumber>Volume 112 Page 2681</partNumber>
</titleInfo>
 <identifier type="Statute citation">112 Stat. 2681</identifier>
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<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Statutes at Large</title>
  <partNumber>Volume 114 Page 2763</partNumber>
</titleInfo>
 <identifier type="Statute citation">114 Stat. 2763</identifier>
</relatedItem>
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 <titleInfo>
  <title>United States Public Law 33 (105th Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 105-33</identifier>
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 <titleInfo>
  <title>United States Public Law 277 (105th Congress)</title>
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 <identifier type="public law citation">Public Law 105-277</identifier>
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 <titleInfo>
  <title>United States Public Law 554 (106th Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 106-554</identifier>
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