May 14, 2020

CMS Releases IPPS Proposed Rule, Changing Payment Models and Price Transparency Requirements

On May 11, CMS released the Fiscal Year 2021 IPPS Proposed Rule. The Proposed Rule includes changes to hospital payment policies, price transparency requirements, and public reporting requirements. Most significantly, the Proposed Rule seeks to increase Medicare payments for inpatient hospital services by 1.6% in 2021. The Proposed Rule also includes a 2.5% increase for operating payments and a 3.1% increase for acute care hospitals that fulfill EHR and quality reporting requirements. Payments for uncompensated care; however, would see a net decrease in payments. In addition, the Proposed Rule seeks to require hospitals to disclose negotiated contract terms with insurers. Providers seeking to comment on the Proposed Rule must do so by July 10.