The Financial Burdens of the Balanced Budget Act of 1997

Abstract

The Balanced Budget Act of 1997 (BBA) was signed into law on August 5, 1997 as Public Law No. 105-33. This single act introduced a revolutionary phase for the health care industry in the United States. It marked the beginning of momentous change to the overall health care coverage provided through the Medicare program. These changes, contained in the Balanced Budget Act, were intended to reduce substantially Medicare reimbursement, primarily to postacute care providers, including Certified Home Health Agencies. As a matter of fact, the Federal Register of August 5, 1999 states that “the intent of Section 4602 of the BBA is to control the soaring expenditures of the Medicare home health benefit that have been driven largely by increased utilization rather than price per visit.”