May 4, 2001

HCFA Publishes FY 2002 PPS Proposed Rule

The Health Care Financing Administration (HCFA) published in the May 4 Federal Register its annual proposed rule for changes to the Medicare inpatient prospective payment system (PPS). The changes would be applicable to payments for Medicare discharges occurring on or after Oct. 1, 2001. Comments are due 60 days after publication in the Federal Register.

In addition to other changes, the proposed rule will implement a number of provisions mandated by the Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 (BIPA). These include maintaining the IME level at its FY 2001 level, and implementing the increase to the direct GME per resident amount floor to 85 percent. In addition, the May 4 notice will propose a methodology for paying for new medical services and technologies.

Information: Karen Fisher, AAMC Division of Health Care Affairs, 202-862-6140.