Medicare Home Health Agency Efficiency Act of 1998

Medicare Home Health Agency Efficiency Act of 1998 - Amends title XVIII (Medicare) of the Social Security Act, as amended by the Balanced Budget Act of 1997, with respect to the interim payment system for home health services. Replaces the current reasonable cost limit under the system (105 percent of the median of per visit costs of freestanding home health agencies) with: (1) 110 percent of the mean of such costs (during FY 1998); and (2) 107 percent of such mean (for cost reporting periods beginning on or after October 1, 1998). Repeals the two-year freeze on payment increases for such services. Revises the formula for the per beneficiary annual limitation. Requires the Secretary of Health and Human Services to establish, according to a specified formula, a per beneficiary efficiency standard for services furnished by home health agencies for cost reporting periods beginning on or after October 1, 1997. Repeals the default reduction of interim limits.