Homebound Elderly Relief Opportunity Act of 1998

Homebound Elderly Relief Opportunity Act of 1998 - Amends title XVIII (Medicare) of the Social Security Act (SSA), as amended by the Balanced Budget Act of 1997 (BBA '97), with respect to the computation formula of the interim system of limited payments for services provided by home health agencies, with a revised formula containing a specific per beneficiary annual limitation according to the census division in which an agency is located.

(Sec. 2) Declares that such interim system shall not apply for a cost reporting period beginning during FY 1999 through 2002 unless the Secretary of Health and Human Services determines that the amount of the aggregate expenditures for home health services in a fiscal year exceeds specified applicable amounts for FY 1999 and 2002. Eliminates the special per beneficiary payment rule for new agencies that was added by BBA '97 for determination of the reasonable cost of such services.

Provides for a three percent increase in per visit cost limits for cost reporting periods beginning on or after October 1, 1998.

Precludes administrative or judicial review of certain actions by the Secretary with respect to payment limits for cost reporting periods beginning on or after October 1, 1998.

Amends BBA '97 with regard to the establishment of a prospective payment system (CPPS) for home health care services to repeal the current requirement that during certain applicable cost reporting periods applicable limits under Medicare's reasonable cost requirements be reduced by 15 percent.

(Sec. 3) Directs the Secretary to report to the Congress on: (1) research paid for by the Secretary with regard to development of a PPS for Medicare home health services, with a summary of research results; and (2) the schedule for PPS implementation.

Directs the Medicare Payment Advisory Commission to: (1) report to the Congress on the Secretary's research report along with recommendations with respect to matters in it; and (2) include in its annual report to the Congress an analysis of whether changes in law made by this Act with regard to payments impede access to home health services by Medicare beneficiaries.

Directs the Comptroller General to audit expenditures by the Health Care Financing Administration for research costs and audit estimates of aggregate expenditures for Medicare home health services.