CMS Pub. 100-02, ch. 7, § 10.10

For individuals under a home health plan of care, payment for all services

and supplies, with the exception of certain injectable osteoporosis drugs,

DME, and furnishing NPWT using a disposable device is included in the

HH PPS base payment rates. HHAs must provide the covered home health

services (except DME) either directly or under arrangement, and must bill

for such covered home health services. Payment must be made to the

HHA.

A. Home Health Services Subject to Consolidated Billing

Requirements

The home health services included in the consolidated billing governing

the HH PPS are:

• Part-time or intermittent skilled nursing services;

• Part-time or intermittent home health aide services;

• Physical therapy;

• Speech-language pathology services;

• Occupational therapy;

• Medical social services;

• Routine and nonroutine medical supplies;

• Covered osteoporosis drug as defined in §1861(kk) of the Act, but

excluding

other drugs and biologicals;

• Furnishing NPWT using a disposable device as that term is defined in

§1834 of the Act, which includes only the device paid separately

(specified by the assigned HCPCS code) and does not include payment for

the professional services.

• Medical services provided by an intern or resident-in-training of the

program of the hospital in the case of an HHA that is affiliated or

under common control with a hospital with an approved teaching

program; and

• Home health services defined in §1861(m) of the Act provided under

arrangement at hospitals, SNFs, or rehabilitation centers when they

involve equipment too cumbersome to bring to the home or are furnished

while the patient is at the facility to receive such services.

B. Medical Supplies

The law requires that all medical supplies (routine and nonroutine) be

provided by the HHA while the patient is under a home health plan of

care. The agency that establishes the 30-day period is the only entity that

can bill and receive payment for medical supplies during a 30-day period

for a patient under a home health plan of care. Both routine and

nonroutine medical supplies are included in the base rates for every

Medicare home health patient regardless of whether or not the patient

requires medical supplies during

the 30-day period

Due to the consolidated billing requirements, CMS provided additional

amounts in the base rates for those nonroutine medical supplies that have

a duplicate Part B code that could have been unbundled to Part B prior to

HH PPS. See §50.4 for detailed discussion of medical supplies.

Medical supplies used by the patient, provider, or other practitioners under

arrangement on behalf of the agency (other than physicians) are subject to

consolidated billing and bundled into the HHA 30-day period payment

rate. Once a patient is discharged from home health and not under a home

health plan of care, the HHA is not responsible for medical supplies.

DME, including supplies covered as DME, are paid separately from the

HH PPS and are excluded from the consolidated billing requirements

governing the HH PPS. The determining factor is the medical

classification of the supply, not the diagnosis of the

patient.

Certain injectable osteoporosis drugs are included in consolidated billing

under the home health benefit. However, payment is not bundled into the

HH PPS payment rates. HHAs must bill for the osteoporosis drug in

accordance with billing instructions. Payment is in addition to the HH PPS

payment.

Furnishing NPWT using a disposable device is included in consolidated

billing under the home health benefit. However, payment for the device is

not bundled into the HH PPS payment rates. HHAs must bill for NPWT

using a disposable device in accordance with billing instructions. Payment

is in addition to the HH PPS payment.

C. Relationship Between Consolidated Billing Requirements and Part

B Supplies and Part B Therapies Included in the Baseline Rates That

Could Have Been Unbundled Prior to HH PPS That No Longer Can

Be Unbundled

The HHA is responsible for the services provided under arrangement on

their behalf by other entities. Covered home health services at §1861(m)

of the Act (except DME) are included in the baseline HH PPS rates and

subject to the consolidated billing requirements while the patient is under

a plan of care of the HHA. The time the services are bundled is while the

patient is under a home health plan of care.

Physician services or nurse practitioner services paid under the physician

fee schedule are not recognized as home health services included in the

PPS rates. Supplies incident to a physician service or related to a

physician service billed to the Medicare contractor are not subject to the

consolidated billing requirements. The physician would not be acting as a

supplier billing the DME Medicare contractor in this situation.

Therapies (physical therapy, occupational therapy, and speech-language

pathology services) are covered home health services that are included in

the baseline rates and subject to the consolidated billing requirements. In

addition to therapies that had been paid on a cost basis under home health,

CMS has included in the rates additional amounts for Part B therapies that

could have been unbundled prior to PPS. These therapies are subject to the

consolidated billing requirements. There are revenue center codes that

reflect the ranges of outpatient physical therapy, occupational therapy, and

speech language pathology services and Healthcare Common Procedure

Coding System (HCPCS) codes that reflect physician supplier codes that

are physical therapy, occupational therapy, and speech-language

pathology services by code definition and are subject to the consolidated

billing requirements. Therefore, the above-mentioned therapies must be

provided directly or under arrangement on behalf of the HHA while a

patient is under a home health plan of care and cannot be separately billed

to Part B during an open 30-day period of care.

D. Freedom of Choice Issues

A beneficiary exercises his or her freedom of choice for the services under

the home health benefit listed in §1861(m) of the Act, including medical

supplies, but excluding DME covered as a home health service by

choosing the HHA. Once a home health patient chooses a particular HHA,

he or she has clearly exercised freedom of choice with respect to all items

and services included within the scope of the Medicare home health

benefit (except DME). The HHA's consolidated billing role supersedes all

other billing situations the beneficiary may wish to establish for home

health services covered under the scope of the Medicare home health

benefit during the certified episode.

E. Knowledge of Services Arranged for on Behalf of the HHA

The consolidated billing requirements governing HH PPS requires that the HHA provide

all covered home health services (except DME) either directly or under arrangement

while a patient is under a home health plan of care. Providing services either directly or

under arrangement requires knowledge of the services provided during the 30-day period.

In addition, in accordance with current Medicare conditions of participation and

Medicare coverage guidelines governing home health, the patient's plan of care must

reflect the physician or allowed practitioner ordered services that the HHA provides

either directly or under arrangement. An HHA would not be responsible for payment in

the situation in which they have no prior knowledge (unaware of physician or allowed

practitioner orders) of the services provided by an entity during a 30-day period to a

patient who is under their home health plan of care. An HHA is responsible for payment

in the situation in which services are provided to a patient by another entity, under

arrangement with the HHA, during a 30-day period in which the patient is under the

HHA's home health plan of care. However, it is in the best interest of future business

relationships to discuss the situation with any entity that seeks payment from the HHA

during a 30-day period in an effort to resolve any misunderstanding and avoid such

situations in the future