The Balanced Budget Act of 1997, as amended by the Omnibus Consolidated and Emergency Supplemental Appropriations Act (OCESAA) of 1999, called for the development and implementation of a prospective payment system (PPS) for Medicare home health services. Medicare already pays for inpatient hospital and nursing home services under a PPS. The BBA put in place the interim payment system (IPS) until the PPS could be implemented. Beginning October 1, 2000, the home health PPS replaced the IPS for all home health agencies.
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