The AHA today released a detailed summary of the Centers for Medicare & Medicaid Services’ final rule for the calendar year 2023 home health prospective payment system. This final rule will increase HH payments by an estimated net 0.7%, or $125 million, in calendar year 2023 relative to CY 2022. This net update includes a market basket update of 4.1%, a productivity cut of 0.1 percentage points, as well as an increase of 0.2 percentage points for outlier payments. It also includes a cut to all payments of 7 percentage points in order to achieve budget-neutrality for the Patient-driven Groupings Model on a prospective basis. However, the agency will only implement half of that reduction in CY 2023. CMS also finalized its proposal to require HH agencies to report all-payer patient assessment data but will provide a phase-in period for CY 2025 in which failure to submit the data will not result in a penalty.

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