Payment Rate Updates CMS has proposed a 2.1 percent update to the federal operating standardized amount. This is based on a 3 percent market basket update, reduced by two factors mandated by the Patient Protection and Affordable Care Act (PPACA): a 0.8 percent economy wide productivity adjustment and an additional 0.1 percent reduction.
The Centers for Medicare & Medicaid Services (CMS) is accepting comments through June 25, 2012, on the proposed rule changes to the hospital inpatient prospective payment system (IPPS) for federal fiscal year (FY) 2013. The proposed rule identifies CMS’ changes to the annual payment policy updates for hospitals as well as revisions to the wage index, quality reporting requirements and value-based purchasing. The proposed Payment Rate Updates establish the FY 2013 operating standardized amount at $5,325.62, a 2.1 percent increase from prior year for those reporting quality data.
In accordance with the Patient Protection and Affordable Care Act (PPACA), the Secretary of Health and Human Services issued a report to Congress on April 11, 2012, addressing a plan to reform the Medicare wage index methodology.
On October 5, 2011, the Department of Health and Human Services Office of Inspector General (OIG) issued its work plan for 2012, which outlines specific focus areas for the OIG next year.