Congress imposed new limits on home health payments through a provision of the Balanced Budget Act of 1997 (BBA) called the Home Health Prospective Payment System (HH PPS)
What is the Home Health Prospective Payment System" (HH PPS)?
The provision of the Balanced Budget Act of 1997 (BBA) that imposed new limits on home health payments is commonly referred to as the Home Health Prospective Payment System (HH PPS).
This system established a prospective payment mechanism for Medicare home health services, which means that payments are based on a predetermined, fixed amount rather than the actual costs incurred by providers. The HH PPS aimed to control costs and improve the accuracy of Medicare payments for home health services.