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May 25, 2023 (Cleveland, OH)

The Center Asks NEO Lawmakers for Help on Inpatient Reimbursement

The Center for Health Affairs this week urged the Northeast Ohio members of the U.S. House of Representatives to sign on to a letter circulating on the Hill asking the Centers for Medicare & Medicaid Services (CMS) for assistance with hospital reimbursement.

The letter to CMS Administrator Chiquita Brooks-LaSure expresses concern that the payment updates included in the inpatient prospective payment system (IPPS) proposed rule for fiscal year (FY) 2024 do not fully account for the current cost of care and will result in an overall payment reduction for hospitals. The letter requests that CMS consider using its special exceptions and adjustments authority to update the proposed payments in the final rule.

The letter goes on to say, in the proposed rule, CMS relies on historical data that does not predict the impact of the current elevated cost of providing care and the increased growth in expenses due to labor and supply chain costs. The letter requests CMS to use its special authority to make a retrospective adjustment to account for the difference between the 2.7% market basket update that was implemented for FY 2022 and the actual market basket update of 5.7%.

The Center asked Reps. Shontel Brown, Jim Jordan, Dave Joyce, Bob Latta, Max Miller and Emilia Sykes to add their names to the letter, which is spearheaded by Reps. Carol Miller (R-WV) and Brad Schneider (D-IL).

The FY 2024 IPPS proposed rule was published in the Federal Register on May 1. The final rule is expected to be published around Aug. 1 with the new payment rates taking effect Oct. 1.