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Last Updated on:
07/09/08

 

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:

  • Rates based on a 60 day episode; 50-60% paid up front

  • Case-mix group based on OASIS

  • Special rates for transfers, change in condition, low utilization, and outliers

  • PIP eliminated

  • Updates to rates will be HHA market basket minus 1.1% for FY's 2002 and 2003

  • OASIS cost reimbursement included in PPS rate

DME excluded from consolidated billing

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Hansen, Hunter & Company, P.C.
8930 SW Gemini Drive, Beaverton, OR 97008 | Office 503-244-2134 | Toll Free 800-547-3159 | Fax 503-244-9754

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