Fiscal Year 2002 Medicare Inpatient Prospective Payment System:
Proposed Rule
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Related Resources
AAMC Documents
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Current Status as of May 25, 2001
On May 4, 2001, the Health Care Financing Administration
(HCFA) published a proposed rule setting forth the changes
to the Medicare inpatient prospective payment system (PPS)
for Federal fiscal year (FFY) 2002.
Summary
According to the proposed rule, the standardized payment
amount for hospitals' per case payment under the inpatient
PPS will increase by 2.55 percent in FFY 2002. This reflects
the requirement in the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (BIPA) that the update
factor equal the hospital marketbasket less 0.55 percentage
points. According to the financial impact analysis in the
proposed rule, the update will increase payments to all hospitals
and teaching hospitals with fewer than 100 residents by 1.9
percent. Payments to teaching hospitals with more than 100
residents will increase 1.3 percent.
The proposed rule also implements a BIPA provision that modifies
the direct graduate medical education (DGME) payment methodology.
The provision would raise the "floor" from 70 percent
to 85 percent of the national average per-resident amount
used to calculate DGME payments. HCFA estimates that this
change will cost Medicare program $104.4 million. The proposed
rule maintains the indirect medical education (IME) adjustment
at 6.5 percent for FFY 2002. The proposed rule also contains
a new methodology for paying for new medical services and
technologies.
AAMC Action
The AAMC has prepared a summary and
analysis of the proposed rule and submitted comments
on it.
Contacts
Karen Fisher, Senior Associate Vice President
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140
Proposed Rule
The proposed rule, published May 4, 2001, in the Federal
Register, is available in five parts in text format and Portable
Document Format (PDF):
42 CFR Parts 405, 412, 413 Medicare Program;Changes to the
Hospital Inpatient Prospective Payment Systems and Fiscal
Year 2002 Rates; Proposed Rule
- Part I [pp.22645-22694]: Text
/ PDF
- Part II [pp.22695-22744]: Text
/ PDF
- Part III [pp.22745-22794]: Text
/ PDF
- Part IV [pp.22795-22844]: Text
/ PDF
- Part V [pp.22845-22891]: Text
/ PDF
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