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  • Washington Highlights

    Senate, House Send Dear Colleague Letters to CMS on IPPS


    Allyson Perleoni, Director, Government Relations
    For Media Inquiries

    Led by Reps. Brad Schneider (D-Ill.) and Carol Miller (R-W.V.) and Sens. Bob Menendez (D-N.J.) and Kevin Cramer (R-N.D.), 112 House members and 30 Senators sent letters to Centers for Medicare & Medicaid Services (CMS) Administrator Chiquita Brooks-LaSure, requesting that the CMS reevaluate and potentially revise key pieces of the fiscal year (FY) 2023 Inpatient Prospective Payment Schedule (IPPS) rule before it is made final [refer to Washington, Highlights, April 22].

    The proposed IPPS rule, the lawmakers stated, calculates payment rates utilizing historical market basket data that is not predictive of the current elevated costs of care and increase in expenses due to the COVID-19 pandemic. The Senate letter also noted that the productivity update in the proposed rule is inaccurate, as it “assumes hospitals can emulate the general economy’s productivity gains.” The Senators noted that “in reality the uncertain conditions hospitals continue to operate under due to COVID-19 have resulted in productivity declines, not gains.”

    Specifically, both letters asked the CMS to consider using its special exceptions and adjustments authority to retrospectively adjust the market basket update for FY 2022 to account for unprecedented inflation. The Senate letter also asked the CMS to hold off on its proposed productivity cut for FY 2023. The AAMC supports these requests and included them in its FY 2023 IPPS comments [refer to Washington Highlights, June 24].

    The final FY 2023 IPPS rule is expected in the coming weeks.