CMS releases home health PPS final rule for CY 2022

The Centers for Medicare & Medicaid Services today released its calendar year 2022 final rule for the home health prospective payment system. The rule finalized a net update of 3.2% relative to CY 2021. This includes a 2.6% market basket increase ($465 million), a 0.7% increase for high-cost outlier cases ($125 million), and 0.1% decrease to rural payments as required by law (-$20 million). The rule also finalizes changes to the HH Medicare Conditions of Participation that were implemented during the COVID-19 public health emergency, as well as CoP changes mandated by the Consolidated Appropriations Act of 2021, which pertain to the supervision of home health aides and the use of telecommunications in conducting patient assessments in the home. In addition, as required by law, the rule implements the new authority for occupational therapists to conduct initial and comprehensive patient assessments. CMS also finalized its proposal to expand the HH value-based purchasing program pilot to a mandatory national program; the model will begin on Jan. 1, 2022 in “pre-implementation” status as the agency provides technical assistance to agencies, with CY 2023 as the first performance year (informing CY 2025 payment adjustments).