Rural Home Health Medicare Add-On

On March 23, 2010, President Obama signed into law the Patient Protection and Affordable Care Act (PPACA), which creates a 3 percent add-on to payments made for home health services to patients in rural areas. The add-on applies to episodes ending on or after Apr. 1, 2010, through Dec. 31, 2016.


Similar to temporary rural add-on provisions in the past, claims that report a rural state code (code beginning with 999) as the Core Based Statistical Area (CBSA) code for the beneficiary’s residence will receive the additional 3 percent payment. The CBSA code is associated with value code 61 on home health claims.


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