CY 2023 Home Health Prospective Payment System Final Rule Summary

On November 4, 2022, CMS published in the Federal Register a final rule addressing updates to the Home Health Prospective Payment System (HH PPS) rates for calendar year 2023, home infusion therapy services requirements, and related matters (87 FR 66790). Among other changes, this rule finalizes a permanent budget neutral approach to smooth year-to-year changes in the hospice wage index by applying a permanent cap on negative wage index changes greater than a 5 percent decrease from the prior year. CMS also finalizes a permanent prospective payment adjustment to the home health 30-day period payment rate to account for any changes in aggregate expenditures resulting from the difference between assumed behavior changes and actual behavior changes, due to implementation of the Patient-Driven Groupings Model and 30-day unit of payment. CMS is phasing-in half of the full permanent adjustment (-3.295%) for 2023.

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