Home Health & Hospice Week

Don't shortchange yourself under new NRS rules.

Question: When reporting the “price” of nonroutine supplies, is the home health agency required to report the “cost” (the amount paid by the home health agency to the vendor) or the “customary charge” (the amount paid by the patient to the home health agency …quot; cost plus mark up)? --Florida Subscriber

Answer: “The agency should report and bill the customary charge for NRS,” explains consultant M. Aaron Little with BKD in Springfield, MO. The customary charge includes the cost plus a customary markup based on agency policy, Little says.

While the cost data won’t impact agencies’ prospective payment system payments in the short run, the Centers for Medicare & Medicaid Services will use the data to set NRS payment rates in the future, experts remind providers. Groups like the Medicare Payment Advisory Commission also use cost report data to figure HHA profit margins and other statistics. v

Note: Please submit your questions on any home care topic to editor Rebecca Johnson at rebeccaj @eliresearch.com.