Medicare inpatient prospective payment system regulation

Federal Health Policy Update for Tuesday, December 21

The following is the latest health policy news from the federal government as of 2:30 p.m. on Tuesday, December 21.  Some of the language used below is taken directly from government documents. The White House The administration has announced new steps to protect Americans and help communities and hospitals battle the COVID-19 omicron variant.  The major parts of this initiative include: Increasing support for hospitals by deploying 1000 Department of Defense medical personnel to hospitals during January and February and federal medical personnel to some states immediately; expanding hospital capacity; providing support to states to help hospitals create and license [...]

CMS Finalizes FY 2021 Payments to Hospitals

Medicare has announced how it will pay hospitals for inpatient care in FY 2021 with publication of its annual inpatient prospective payment system regulation last week. Among the changes announced by the Centers for Medicare & Medicaid Services: A 2.9 percent increase in fee-for-service inpatient rates. A compromise on its proposal to require hospitals to report their payer-specific negotiated rates with Medicare Advantage plans. Changes in how Medicare will calculate Medicare disproportionate share (Medicare DSH) uncompensated care payments. A much smaller cut than originally proposed in the pool of funds for Medicare DSH uncompensated care payments. Minor adjustments in the [...]

MedPAC Weighs in on Proposed Medicare Payment Changes

The Medicare Payment Advisory Commission has submitted formal comments to the Centers for Medicare & Medicaid Services in response to the latter’s publication of a proposed regulation that would govern how Medicare will pay for acute-care hospital inpatient services and long-term hospital care in the coming 2020 fiscal year. The 14-page MedPAC report addresses four aspects of the proposed Medicare payment regulation: inpatient- and outpatient drug- and device related payment proposals proposed changes in the hospital area wage index the reporting of hospitals’ uncompensated care on the Medicare cost report’s S-10 worksheet the long-term hospital prospective payment system MedPAC is [...]

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