Correction NoticeSchedules of Per-Visit and Per-Beneficiary Limitations on Home Health Agency Costs for Cost Reporting Periods Beginning on or After October 1, 1999 and Portions of Cost Reporting Periods Beginning Before October 1, 2000 (Medical Program)ACTION

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Care Financing Administration

[HCFA-1060-CN]

RIN 0938-AJ57

Correction Notice--Schedules of Per-Visit and Per-Beneficiary

Limitations on Home Health Agency Costs for Cost Reporting Periods

Beginning on or After October 1, 1999 and Portions of Cost Reporting

Periods Beginning Before October 1, 2000 (Medical Program)--ACTION

Schedules of Per-Visit and Per-Beneficiary Limitations on Home Health

Agency Costs for Cost Reporting Periods Beginning on or After October

1, 1999 and Portions of Cost Reporting Periods Beginning Before October

1, 2000 (Medical Program)

AGENCY: Health Care Financing Administration (HCFA), HHS.

ACTION: Correction of notice with comment period.

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SUMMARY: In the August 5, 1999 issue of the Federal Register (64 FR

42766), we published a notice with comment period setting forth revised

schedules of limitations on home health agency costs that may be paid

under the Medicare program for cost reporting periods beginning on or

after October 1, 1999. This document corrects technical errors made in

that document.

EFFECTIVE DATE: October 1, 1999.

FOR FURTHER INFORMATION CONTACT: Cathy Johnson, (410) 786-5241.

SUPPLEMENTARY INFORMATION:

Background

In the August 5, 1999 notice, we announced the limitations for home

health agencies for cost reporting periods beginning on or after

October 1, 1999, including the per-visit limitations. We are correcting

table 6A, Per-Visit Limitations, to account for an inadvertent

misapplication of the 1.1 percent reduction related to the market

basket update factors. The aggregate per-beneficiary limits were

calculated correctly in the August 5 notice and are not affected.

In addition, there were inadvertent rounding errors and a

typographical error in the three tables discussing OASIS adjustment.

Due to these errors, we are correcting Table 1, Continuous Oasis

Adjustment: Base; Table 2, Continuous OASIS Adjustment: 5-Year

Depreciation Averaging; and Table 3, OASIS Adjustment: ``One-Time''.

Below are the corrected figures and corrected Tables 1 through 3. The

total continuous OASIS adjustment factor should be $.118895, rather

than $.11916. The total continuous OASIS adjustment factor of $.118895

when added to the one-time OASIS adjustment of $.010267 yields an

overall adjustment of $.129162.

Correction of Errors

1. On page 42771, Table 1 is corrected to read as follows:

Table 1.--Continuous Oasis Adjustment: Base

[For data reporting]

----------------------------------------------------------------------------------------------------------------

Type of Adjustment Source Formula Cost per visit

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Audits to ensure data accuracy...... University of Colorado (((((10 records per month * .02542

(CHPR), BLS Occupational 12 months)) * .25 hrs) *

Employment Survey (1996), $25.42)/30,000 avg visits)

1994 & 1995 HCFA Cost . . . professional staff

Report Data.

Data entry, editing, & auditing..... University of Colorado ((((8.5 hrs per month * 12) .059667

(CHPR), Estimated average + (5 hrs per month * 12) +

salary for clerical staff (1 hr per month * 12) + (5

1994 & 1995 HCFA Cost hrs per year)) * $10 per

Report Data. hour) /30,000 avg visits)

Supplies............................ HCFA-3006-IFC OASIS $250 avg cost / 30,000 avg .008333

Reporting (64 FR 3748), visits.

1994 & 1995 HCFA Cost

Report Data.

Ongoing telephone costs............. Regional telephone company (((($13.14 per month, per .007808

1994 & 1995 HCFA Cost line) + ($6.38 per month

Report Data (for average subscriber fee)) * 12

size HHA). months) / 30,000 avg

visits)

---------------

Total........................... ............................ ............................ $.101228

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2. On page 42771, Table 2 is corrected to read as follows:

[[Page 57102]]

Table 2.--Continuous Oasis Adjustment: 5-Year Depreciation Averaging

[For data reporting]

----------------------------------------------------------------------------------------------------------------

Type of adjustment Source Formula Cost per visit

----------------------------------------------------------------------------------------------------------------

Computer Hardware: American Hospital

Association's Health Data & Coding

Standards Group's ``Estimated Useful

Lives of Depreciable Hospital

Assets'' (revised 1998)

--Computer........................ Average cost for PC with $2050 computer depreciated $.022778

minimal acceptable over 3 years.... (($2050/

standards 1994 & 1995 HCFA 3) / 30,000 avg visits.

Cost Report Data.

--Printer......................... Average cost for printer $600 printer cost .004

with minimal acceptable depreciated over 5

standards 1994 & 1995 HCFA years... (($600/5) /

Cost Report Data. 30,000 avg visits).

First 3 Year's Adjustment.. * Note: computer & printer .026778

depreciation.

Next 2 Year's Adjustment... * Note: printer ONLY .004

depreciation.

5 Year Average Adjustment.. ((($.026778*3) + ($.004 * .017667

2)) / 5).

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3. On page 42771 and continuing on page 42772, Table 3 is corrected

to read as follows:

Table 3.--Continuous Oasis Adjustment: ``One-Time''

[For data reporting]

----------------------------------------------------------------------------------------------------------------

Type of adjustment Source Formula Cost per visit

----------------------------------------------------------------------------------------------------------------

Training of Data Entry Staff........ BLS Employer Provided (24 hrs * $10) / 30,000 avg $.008

Training (Hrs of Training visits.

(1995) & an estimated

average salary for clerical

personnel 1994 & 1995 HCFA

Cost Report Data.

Telephone installation.............. 1994 & 1995 HCFA Cost Report ($28 processing fee) + ($40 .002267

Data. per line connect fee) /

30,000 avg visits.

---------------

Total One Time Adjustment....... ............................ ............................ .010267

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4. On page 42772, the following corrections are made:

a. In the first paragraph of column 1, in line 13, ``$.101561'' is

corrected to read ``$.101228''.

b. In the first paragraph of column 1, in the fifth line from the

bottom, ``$.0267'' is corrected to read ``$.026778''.

c. In the second paragraph of column 1, which continues in column

2, in line 15, ``$.026777'' is corrected to read ``$.026778''.

d. In the second paragraph of column 1, in line 23, ``$.01766'' is

corrected to read ``$.017667''.

e. In the second paragraph of column 1, the last sentence as

continued in column 2, is corrected to read ``This yearly average

computer hardware depreciation adjustment ($.017667), when added to the

base continuous OASIS adjustment ($.101228), results in a total

continuous OASIS adjustment of $.118895.''

f. In the first full paragraph in column 2, in line 6, ``$.0103''

is corrected to read ``$.010267''.

5. On page 42777, Table 6A is corrected in its entirety to read as

follows:

Table 6A.--Per-Visit Limitations

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Per-visit Nonlabor

Type of visit limitation Labor portion portion

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MSA (NECMA) location:

Skilled nursing care........................................ $100.81 $78.91 $21.90

Physical therapy............................................ 115.56 90.16 25.40

Speech therapy.............................................. 117.06 91.40 25.66

Occupational therapy........................................ 115.97 90.46 25.51

Medical social services..................................... 141.40 110.13 31.27

Home health aide............................................ 46.43 36.39 10.04

NonMSA location:

Skilled nursing care........................................ 111.07 90.28 20.79

Physical therapy............................................ 127.15 103.15 24.00

Speech therapy.............................................. 133.00 107.68 25.32

Occupational therapy........................................ 132.50 107.01 25.49

Medical social services..................................... 174.10 141.49 32.61

Home health aides........................................... 46.66 37.98 8.68

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[[Page 57103]]

Section 1861(v)(1)(A) of the Social Security Act (42 U.S.C. 1395x

(v)(1)(A).

(Catalog of Federal Domestic Assistance Program No. 93.773

Medicare--Hospital Insurance)

Dated: October 15, 1999.

Brian P. Burns,

Deputy Assistant Secretary for Information Resources Management.

[FR Doc. 99-27586 Filed 10-19-99; 11:43 am]

BILLING CODE 4120-01-P