CMS issues 2006 Medicare home health reimbursement

Medicare reimbursements for home health agencies overall would rise 2.5% as of Jan. 1, 2006, a total annual increase for the industry of about $330 million, under a CMS proposal. The rate was predetermined by a provision in the Medicare Modernization Act of 2003. The CMS also proposed revised market definitions, used in adjusting payments to reflect geographic cost differences. As a result, payments would increase 3.5% to agencies in rural areas and 2.3% to those in urban areas. -- by Tony Fong