TY - JOUR AU - Huckfeldt,Peter J. AU - Sood,Neeraj AU - Escarce,José J AU - Grabowski,David C. AU - Newhouse,Joseph P. TI - Effects of Medicare Payment Reform: Evidence from the Home Health Interim and Prospective Payment Systems JF - National Bureau of Economic Research Working Paper Series VL - No. 17870 PY - 2012 Y2 - February 2012 UR - http://www.nber.org/papers/w17870 L1 - http://www.nber.org/papers/w17870.pdf N1 - Author contact info: Peter J. Huckfeldt RAND Corporation Santa Monica, California E-Mail: Peter_Huckfeldt@rand.org Neeraj Sood Schaeffer Center for Health Policy and Economics 3335 S. Figueroa Street, Unit A Los Angeles, CA 90089-7273 Tel: 310/393-0411 Fax: 310/260-8156 E-Mail: nsood@healthpolicy.usc.edu Jose Escarce UCLA Med-GIM-HSR 911 Broxton Avenue Box 951736 Los Angeles, CA 90024 Tel: 310/794-3842 Fax: 310/794-0732 E-Mail: jescarce@mednet.ucla.edu David Grabowski Harvard University Department of Health Care Policy Harvard Medical School 180 Longwood Avenue Boston, MA 02115 E-Mail: grabowski@med.harvard.edu Joseph P. Newhouse Division of Health Policy Research and Education Harvard University 180 Longwood Avenue Boston, MA 02115-5899 Tel: 617/432-1325 Fax: 617/432-3503 E-Mail: newhouse@hcp.med.harvard.edu AB - Medicare continues to implement payment reforms that shift reimbursement from fee-for-service towards episode-based payment, affecting average and marginal reimbursement. We contrast the effects of two reforms for home health agencies. The Home Health Interim Payment System in 1997 lowered both types of reimbursement; our conceptual model predicts a decline in the likelihood of use and costs, both of which we find. The Home Health Prospective Payment System in 2000 raised average but lowered marginal reimbursement with theoretically ambiguous effects; we find a modest increase in use and costs. We find little substantive effect of either policy on readmissions or mortality. ER -