Home Health Prospective Payment System Rate Update for Calendar Year 2006
This final rule sets forth an update to the 60-day national episode rates and the national per-visit amounts under the Medicare
prospective payment system for home health agencies. This final rule is the first update of the home health prospective payment
system (HH PPS) rates that uses the revised area labor market Metropolitan Statistical Area designations for calendar year
2006. In implementing the new area labor market designations, we are allowing for a one-year transition period. This transition
consists of a blend of 50 percent of the new area labor market designations' wage index and 50 percent of the previous area
labor market designations' wage index. In addition, we are revising the fixed dollar loss ratio, which is used in the calculation
of outlier payments.