By Chris Attaya July 07, 2023
The proposed CMS Home Health Prospective Payment System Rate Update was released on Friday, June 30th in advance of the official posting to the Federal Register on July 10th. CMS is proposing an overall 2.2% rate cut that includes a market basket increase of 3.0% (less a productivity adjustment of .3%) along with a 5.65% cut due to permanent behavioral adjustments in switching from PPS to PDGM. Since the CY 2023 rulemaking reflected only half of the permanent behavioral cuts (using data from CY 2020 and CY 2021), CMS is proposing to implement the second half of the CY 2023 cut along with another 1.51% to account for behavioral changes recognized in CY 2022.