Calendar Year 2006 Market Basket Update
Home health agencies are scheduled to receive a market basket update of 2.8% for calendar year 2006 (CY 2006). Thus the national standardized per episode payment will be $2,327.68 ($2,264.28 X 1.028) for next year.
There are two adjustments to this rate worthy of note. First, and less significant, is the fixed dollar loss for outlier patients. This is being reduced from .70 to .65 which translates to a reduction of $72.00 ($1,584.99 - $1,512.99).
Second - and very significant - CMS is changing one of the key wage calculation factors: the definition of the statistical geographic area. CMS is migrating from Metropolitan Statistical Areas (MSAs) to Core Based Statistical Areas (CBSAs). In order to reduce drastic swings in the wage portion of PPS rates, the CY 2006 rates are a blend of 50% MSA and 50% CBSA.
Click here for an Excel spreadsheet that includes some different worksheets with specific data for all counties in our state. Please feel free to manipulate these sheets (especially #2) to best fit your service area. The last two sheets will calculate HHRG and LUPA rates for you once you enter in the correct CBSA rate in the yellow highlighted column. -Mike Dietrich
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