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Government Affairs Home > Washington Highlights > August 9, 2002

2003 Medicare Outpatient Proposed Rule Published

August 9, 2002- On Aug. 9 the Centers for Medicare and Medicaid Services (CMS) published the Medicare outpatient prospective payment system (OPPS) proposed rule for calendar year 2003. The OPPS affects only hospital, not physician, Medicare payments in the outpatient setting.

Under the proposed rule, the base OPPS payment rate will be increased by 3.5 percent, which reflects the current law requirement that the update equal the full increase in the hospital market basket. The proposed rule also revises and updates the payment rates for individual ambulatory payment classifications (APCs), the payment units for the OPPS. For the first time, the APC rates are being set based on claims data submitted by hospitals under the OPPS, rather than the previous system. The rule also includes a proposed method for incorporating into the 2003 APC rates the costs of certain drugs and devices that currently are being paid under a cost-based, transitional pass-through payment methodology.

Comments on the proposed rule are due Oct 9.

Information:
Karen Fisher, Sr. Director, Health Care Affairs
AAMC Health Care Affairs
kfisher@aamc.org
(202) 862-6140

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