The document, HCFA program memo A-00-59, details both the phase-in plan and a secondary home health contingency plan. HCFA created both plans to prevent potential claims submission problems with the October 1, 2000 start of home health PPS.

The PPS phase-in plan proposes to pay all agencies a fixed initial installment for each Request for Accelerated Payment (RAP) submitted, as a cash-flow protection. The payment represents 60% of the national standard rate, without adjustment for the patient's case-mix rating or for the local area wage index.

The contingency plan offers an alternative for agencies that have problems actually submitting the RAPs on October 1. A HCFA spokesperson stresses that the contingency plan is designed only to assist HHAs that are not able to transition to PPS on time. "HCFA will be ready," he maintains.

For a full copy of the memo, click here. --

PPS phase-in system to pay in weekly lump sums

September 01, 14:00 EST

Under HCFA's PPS phase-in system RAPs will be paid in one lump sum weekly based, according to HCFA Program Memo A-00-59, which spells out the phase in plan. (Find the program memorandum on the Government Documents page of this site)

Those HHAs paid under the "contingency plan" will receive only one payment based on the total estimated number of RAPs that would have been submitted had their billing system been capable of doing so no more than 12 days from approval of its request.

Once HCFA's systems are fully operational, phase-in payments will be adjusted up or down according to the payment the HHA should have received per HHRG and wage-adjusted RAP.