CMS End-Stage Renal Disease Payment


On Jun. 27, CMS proposed to amend end-stage renal disease pay rate


  • CMS proposed end-stage renal disease (ESRD) prospective payment system (PPS) rule
  • Updated payment rates and policies and included requests for data under ESRD PPS for renal dialysis services furnished to Medicare beneficiaries on/after Jan. 1, 2025.
  • Also proposed an update to the acute kidney injury (AKI) dialysis payment rate for renal dialysis services furnished by ESRD facilities for calendar year (CY) 2025.
  • Additionally, CMS requested public comment on a potential future health equity payment adjustment and potential future updates to the data validation policy.
  • ESRD PPS Provisions
  • Increased the ESRD PPS base rate to $273.20, which would increase total payments to all ESRD facilities, both freestanding and hospital-based, by approximately 2.2%.
  • Proposal established a methodology for calculating the ESRD facility wage index.
  • Set Low-Volume Payment Adjustment (LVPA) methodology and amended outlier policy.
  • Expanded list of ESRD outlier services to include drugs and biological products that were/would have been included in composite rate prior to establishment of ESRD PPS.
  • Provided data on how CMS will operationalize inclusion of oral-only drugs and biological products as well as budgetary estimates of effects of inclusion for public awareness.
  • AKI Provisions
  • Allowed payment for AKI renal dialysis services furnished to beneficiaries in homes.
  • Additionally, CMS proposed to permit ESRD facilities to bill Medicare for the home and self-dialysis training add-on payment adjustment for beneficiaries with AKI.
  • Updated AKI dialysis payment rate for 2025 to $273.20, equal to ESRD PPS base rate.
  • Proposed to apply CY 2025 ESRD PPS wage index to calculate AKI dialysis payments.
  • ESRD Facility Conditions for Coverage
  • Expanded coverage of home dialysis for beneficiaries with AKI, increasing patient options; proposed change reflects efforts to increase home dialysis access and uptake.
  • Made conforming changes throughout ESRD facility conditions for coverage (CfCs) to clarify home dialysis is available to all dialysis patients, including AKI, ESRD patients.
  • ESRD Quality Incentive Program
  • Beginning with payment year (PY) 2027, CMS is proposing to replace the Kt/V Dialysis Adequacy Comprehensive clinical measure, which scores facility performance.
  • With a Kt/V Dialysis Adequacy measure topic, comprised of 4 individual Kt/V measures and scored based on separate set of performance standards for each measure.
  • Under proposed update, individual Kt/V measures would be adult hemodialysis (HD) Kt/V, adult peritoneal dialysis (PD) Kt/V, pediatric HD Kt/V, and pediatric PD Kt/V.
  • Score measures as Kt/V Dialysis Adequacy Measure Topic, limit total weight of topic to 11% of TPS, weight of current Kt/V Dialysis Adequacy Comprehensive clinical measure
  • Proposed to remove the National Healthcare Safety Network (NHSN) Dialysis Event reporting measure from the ESRD QIP measure set beginning with PY 2027.
  • Consultation
  • Comments on proposed amendments must be submitted by Aug. 26, 2024.
  • Nov. 2024 CMS Final Rule
  • On Nov. 1, 2024, CMS issued final rule updating payment rates and policies under the ESRD PPS for renal dialysis services for Medicare beneficiaries on or after Jan. 1, 2025.
  • Updates various sections under 42 CFR 410, 42 CFR 413, 42 CFR 494, and 42 CFR 512
  • For calendar year (CY) 2025, CMS is increasing the ESRD PPS base rate to $273.82
  • Finalizes update to the AKI dialysis payment rate for renal dialysis services for 2025.
  • Extends Medicare payment to dialysis in the home setting for beneficiaries with AKI.
  • In addition, the final rule modifies how CMS will calculate the transitional drug add-on payment adjustment (TDAPA) for oral-only phosphate binders beginning Jan. 1, 2025.
  • Modifies the LVPA policy to create a two-tiered LVPA; facilities that furnished fewer than 3,000 treatments per cost-reporting year will receive 28.9% upward adjustment.
  • ESRD facilities that furnished 3,000 to 3,999 treatments receive an 18.3% adjustment.
  • Updates requirements for the ESRD Quality Incentive Program (QIP), ESRD Facility Conditions for Coverage, ESRD Treatment Choices Model, and ESRD outlier policy.
  • Includes changes to the methodology for calculating the ESRD facility wage index.
  • Nov. 2024 HHS Fed Reg Final Rule
  • On Nov. 11, 2024, CMS published final rule in federal register; effective Jan. 1, 2025.

Regulators CMS; HHS
Entity Types Ins
Reference 89 FR 89084, 11/12/2024, 0938-AV27; PR, RF CMS-1805-F, 11/1/2024; Info, 6/27/2024; RIN 0938-AV27; Docket CMS-1805-P; Citation: *42 CFR* 410, 413, 494, 512;
Functions Claims/Accelerated Benefits; Compliance; Financial; Operations; Reporting
Countries United States of America
Category
State
Products Corporate; Insurance; Insurance-Health; Medicare
Regions Am
Rule Type Final
Rule Date 6/27/2024
Effective Date 1/1/2025
Rule Id 217644
Linked to N/A
Reg. Last Update 11/11/2024
Report Section US Insurance

Last substantive update on 11/12/2024