Federal Reports

Under the Medicare home health prospective payment system (PPS), the Centers for Medicare & Medicaid Services pays home health agencies (HHAs) a standardized payment for each 60-day episode of care that a beneficiary receives. The PPS payment covers intermittent skilled nursing and home health aide visits, therapy (physical, occupational, and speech-language pathology), medical social services, and medical supplies.

For calendar years (CYs) 2012 through 2015, Medicare allowable amounts for certain back, knee, elbow, and wrist orthotic devices increased from $631.8 million to $815.5 million. We are concerned about the relationship of these increased costs to prices per orthotic device, and specifically whether Medicare allowable amounts are comparable with payments made by select non-Medicare payers.