Washington Sequential billing for home health agencies will be discontinued effective July 1, according to a Program Memorandum issued by the Health Care Financing Administration to fiscal intermediaries.

The policy, in effect since early 1998, required claims to be processed by that date. It failed HHAs because a problem with one claim could cause payment to be held on all subsequent claims, National Association of Home Care officials said.

"This is wonderful news," said Val Halamandaris, NAHC president. "It seems to confirm a change in thinking at HCFA."

NAHC, along with several members of Congress, had asked HCFA to suspend the provision because it was unnecessary and caused harmful cash-flow problems for HHAs that were already financially strapped, officials said. Recently, Sen. Jeff Bingaman, D-N.M., and Sen. Christopher Bond, R-Mo., co-sponsored a Senate resolution disapproving of the sequential billing policy. -K.S.