HCFA extends home health repayment schedules to FIs
By MATTHEW HAY
HHBR Washington Correspondent
BALTIMORE The Health Care Financing Administration (HCFA; Baltimore) last week issued its long-awaited instruction to fiscal intermediaries permitting home health agencies the use of 36-month extended repayment schedules (ERS). By filing a written request, agencies will be automatically approved for a 36-month ERS for interim payment system (IPS) related overpayments, according to a program memorandum (PM) released by HCFA Oct. 21. As expected, the 36-month plans will be interest-free for the first 12 months.
"I am happy to see HCFA take this step," said the Home Care Association of America’s (Jacksonville, FL) Scott Lara. "I just hope the intermediaries follow HCFA’s mandate."
Following a Senate Subcommittee on Investigations hearing on home health last summer, HCFA’s Kathy Buto promised Subcommittee Chairwoman Sen. Susan Collins (R-VT) that the agency would offer extended repayment schedules. But the agency was slow to deliver. So slow, in fact, that Senate Finance Committee Chairman Bill Roth (R-DE) included a similar provision in his Balanced Budget Act reform bill introduced earlier this month.
According to HCFA’s PM, the 36-month ERS will not be subject to any financial needs criteria. The ERS for interim rate IPS adjustments and for IPS cost report determinations will have interest assessed on the latter 24 months. The 36-month ERS option will also be available to agencies that have an ERS that was previously approved for less than 36 months or that defaulted on a previous ERS. The options for repayment apply to agency IPS debts for the two cost report years beginning in FY98 and FY99.
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