Home health reimbursement and the 1997 Budget Act

The Balanced Budget Act of 1997, which was passed by Congress on July 28, was signed into law by President Clinton on August 5. The legislation contains a 5-year plan to balance the federal budget and reduces Medicare expenditures by $115 billion during that period. Home health cuts total $16.2 billion; hospice accounts for $200 million in additional reductions. In addition, the agreement contains significant cuts for home medical equipment (HME) and oxygen.