Federal Register - August 13, 2021
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Source: Federal Register
Federal Register / Vol. 86, No. 154 / Friday, August 13, 2021 / Rules and Regulations For FY 2022, consistent with policy set forth in section VIII. of the preamble of this final rule, for LTCHs that submit quality data, we are recommending an update of 1.9
percent to the LTCH PPS standard Federal rate. For LTCHs that fail to submit quality data for FY 2022, we are recommending an annual update to the LTCH PPS standard Federal rate of -0.1 percent.
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IV. MedPAC Recommendation for Assessing Payment Adequacy and Updating Payments in Traditional Medicare In its March 2021 Report to Congress, MedPAC assessed the adequacy of current payments and costs, and the relationship between payments and an appropriate cost base. MedPAC recommended an update to the hospital inpatient rates by 2.0 percent with the difference between this and the update amount specified in current law to be used to increase payments under MedPACs Medicare quality program, the Hospital
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Value Incentive Program HVIP. MedPAC
initially recommended in March 2019 a redesign of the current hospital quality payment programs. MedPAC stated that together, these recommendations, paired with the recommendation to eliminate the current hospital quality program incentives, would increase hospital payments by increasing the base payment rate and by increasing the average rewards hospitals receive under MedPACs Medicare HVIP. We refer readers to the March 2021 MedPAC
report, which is available for download at www.medpac.gov, for a complete discussion on these recommendations.
Response: With regard to MedPACs recommendation of an update to the hospital inpatient rates equal to 2.0 percent, with the remainder of the applicable percentage increase specified in current law to be used to fund its recommended Medicare HVIP, section 1886b3B of the Act sets the
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requirements for the FY 2022 applicable percentage increase. Therefore, consistent with the statute, we are establishing an applicable percentage increase for FY 2022 of 2.0 percent, provided the hospital submits quality data and is a meaningful EHR user consistent with these statutory requirements.
Furthermore, we continue to appreciate MedPACs recommendation concerning a new HVIP. We agree that continual improvement motivated by quality programs is an important incentive of the IPPS.
We note that, because the operating and capital payments in the IPPS remain separate, we are continuing to use separate updates for operating and capital payments in the IPPS. The update to the capital rate is discussed in section III. of the Addendum to this final rule.
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