CMS issues proposed rule, notice implementing PPACA for inpatient, LTCHs

The Centers for Medicare & Medicaid Services on May 21 issued a second proposed rule on fiscal year 2011 inpatient and long-term care hospital prospective payment system payments, which addresses provisions included in the Patient Protection and Affordable Care Act that affect FY 2011 payments. Those provisions include a market basket cut, wage index-related changes, payments to hospitals in "low-cost" counties, protections for frontier states and Medicare extenders. Comments on the proposed rule will be accepted until July 2.

The American Hospital Associaiton is reviewing the rule and will issue a Special Bulletin to members soon with more information. Also, CMS issued a rate notice implementing inpatient and LTCH PPS market basket cuts for FY 2010 mandated in the PPACA. Both market basket updates were cut by 0.25% effective April 1, 2010.