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Beaverton, OR 97008.
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Last Updated on:
07/09/08
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Balanced Budget Refinement
Act of 1999

President
Clinton signed into law the Balanced Budget Refinement Act of 1999 on November
29, 1999. This article will touch
on some of the highlights related to SNFs and HHAs
SNF
20%
increase in rates*
from April 1, 2000 to September 30, 2000 for RHC, RMC, RMB, SE1, SE2, SE3, SSA,
SSB, SSC, CA1, CA2, CC1, CC2, CB1 and CB2
Option
to choose to bypass the phase-in period
and be reimbursed at 100% federal rate. This
election is available with the first cost reporting period beginning on or
after January 1, 2000. The
provider has 30 days after the beginning of the cost reporting period to make
the election
4%
increase in all RUG III categories*
October 1, 2000 to September 30, 2002.
Part
B therapy cap moratorium
January 1, 2000 through December 31, 2001
Part
B add-on for demonstration facilities
retroactive to the first PPS cost report
The Balanced Budget Refinement Act
of 1999 (BBRA) is intended as temporary relief from the rate decreases caused by
the Balanced Budget Act of 1997 (BBA). HCFA
is currently developing classification modifications to the RUG III payment
system intended to provide more permanent relief beginning October 1, 2000.
They are scheduled to publish the proposed case-mix modifications in
March 2000 and the final modifications in the final rule in July 2000.
*
NOTE: The 20 percent rate increase
for six months is to the federal portion of the rate only.
The same is true for the 4 percent increase beginning October 1, 2000.
We
have developed a rate projection system to help providers make the decision
whether or not to elect to by pass the phase-in period and receive the full
federal rate. Once it is set up for
your facility, it can also be used for "what-if" scenarios regarding
possible case-mix changes in 2000 and how these may affect your decision.
Please contact Jeff Moore or Cheryl
Anselone if you would like further information.
HHA
Case-mix based Prospective Payment
System reimbursement effective 10/1/00:
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Rates based on a 60 day
episode; 50-60% paid up front
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Case-mix group based on OASIS
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Special rates for transfers,
change in condition, low utilization, and outliers
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PIP eliminated
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Updates to rates will be HHA
market basket minus 1.1% for FY's 2002 and 2003
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OASIS cost reimbursement
included in PPS rate
DME excluded from consolidated
billing

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