Medicare Home Health Equity Act of 1998

Medicare Home Health Equity Act of 1998 - Amends title XVIII (Medicare) of the Social Security Act, as amended by the Balanced Budget Act of 1997 (BBA), to: (1) restore the per visit cost limit to 112 percent of the mean (currently, 105 percent of the median) with regard to payments to home health agencies under Medicare; and (2) revise the interim payment system (IPS) for home health agency services.

Directs the Director of the Congressional Budget Office to estimate annually the amount of savings to the Medicare program resulting from the IPS for home health agency services that was established by the BBA. Provides that, if the Director determines that the estimated amount exceeds the amount of savings to the Medicare program that the Director estimated immediately prior to enactment of the BBA by reason of such IPS, then the Director shall certify such excess to the Secretary of Health and Human Services. Requires the Secretary, in turn, when an excess is certified, to prescribe rules under which appropriate adjustments are made to the amount of payments to home health agencies in the case of outliers: (1) where events beyond the home health agency's control or extraordinary circumstances, including the agency's case mix, create reasonable costs for a payment year which exceed the applicable payment limits; or (2) in any other case where the Secretary deems such an adjustment appropriate.