The Balanced Budget Act of 1997 dramatically altered Medicare's home health payment provisions. Effectively, the interim payment system froze agency practice patterns at their 1994 casemix levels. While this did not freeze payment levels, it restricted the continuing trend toward long home health episodes. In 1998, concern was raised that these payment limits would restrict access to care for the sickest, most costly populations. This paper analyzes the characteristics of the expensive health care cases to determine whether access to necessary care is being restricted.
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