On Apr. 10, CMS proposed rule on 2025 hospital payments rates.
CMS proposed rule on the 2025 Medicare hospital inpatient prospective payment system (IPPS) and Long-term care hospital prospective payment system (LTCH PPS).
The proposed rule updates Medicare fee-for-service payment rates and policies for inpatient hospitals and LTCHs for FY 2025, which is required to be updated annually.
Increase in operating payment rates for general acute care hospitals paid under IPPS.
Successful participants in the in Hospital inpatient quality reporting (IQR) program.
This is projected to be 2.6% and reflects projected FY 2025 hospital market basket percentage increase of 3.0%, reduced by a 0.4% productivity adjustment.
CMS expects LTCH standard payment rate to increase by 2.8%, LTCH PPS payments for discharges paid LTCH standard payment rate to increase by 1.2%, $26mn.
Increases are due primarily to a projected 1.3% decrease in high-cost outlier payments as a percentage of total LTCH PPS standard Federal payment rate payments.
Consultation
Comments on the proposed rule due Jun. 10, 2024.
May 2024 CMS Fed Reg
On May 2, 2024, CMS issued proposed rule on 2025 hospital rates in federal register.
Jun. 2024 HHS Correction
On Jun. 4, 2024, HHS published technical corrections to May 2, 2024 proposal.
Aug. 1, 2024 CMS Final Rule
On Aug. 1, 2024, CMS issued final rule on the fiscal year 2025 IPPS and LTCH PPS.
With the exception of instructions 2, 29, and 31 final rule is effective Oct. 1, 2024.
Additionally, the regulation at 42 CFR 405.1845 will become effective Jan. 1, 2025.
