Healthcare Policy News
CMS Finalizes 2021 Inpatient Prospective Payment System Rule
Last week, the Centers for Medicare & Medicaid Services (CMS) released the Fiscal Year (FY) 2021 Hospital Inpatient Prospective Payment System (IPPS) final rule. Among the notable finalized changes are the creation of new Medicare Severity-Diagnosis Related Groups (MS-DRGs) 521 and 522 for Hip Replacement with Principal Diagnosis of Hip Fracture, with or without major complication or comorbidity. Other changes include a New Technology Add-On Payment for the SpineJack Expansion Kit and broadened flexibility in Graduate Medical Education policy for displaced residents. The final rule reflects the Administration’s continued shift toward price transparency through a change in methodology for calculating MS-DRG relative weights based on the inclusion of Medicare Advantage median payer-specific negotiated charges by hospital. CMS states that it plans to begin incorporating this market-based data into the MS-DRG calculations beginning in FY 2024.
New Code Created for COVID-19 Practice Expenses
A new current procedural terminology (CPT) code has been created by the American Medical Association (AMA) to capture the additional costs endured during the COVID-19 pandemic. Physicians have been bearing the brunt of these additional expenses including extra sanitizing supplies, personal protective equipment, patient masks, as well as additional staff time to sanitize rooms, evaluate patients prior to admittance and other safety protocols. CPT code 99072, Additional supplies, materials, and clinical staff time over and above those usually included in an office visit or other non-facility service(s), when performed during a Public Health Emergency as defined by law, due to respiratory-transmitted infectious disease,” is effective September 8 and may be reported until the end of the public health emergency which is set to expire October 23. Per AMA CPT guidance, code 99072 may be reported once per patient in-person encounter regardless of the number of services performed and should only be reported in a non-facility setting. Documentation requirements and coverage may vary among payers, so AAOS members should contact payers for specific policies.
CMS Rule Would Make Latest Medical Technologies More Accessible
On August 31, the Centers for Medicare & Medicaid Services (CMS) issued a proposed a rule that would provide Medicare beneficiaries with access to new treatments, tests, and medical technologies. The Medicare Coverage of Innovative Technology proposed rule would allow beneficiaries faster access to products considered “breakthrough” by the Food and Drug Administration (FDA). National coverage would be provided by Medicare simultaneously with FDA approval for four years, after which time the technology in question would be subject to reevaluation by CMS. The proposed rule also clarifies the “reasonable and necessary” standard CMS uses to determine whether Medicare should cover a product, like a drug, device, or biologic. Public comments will be accepted until November 2. |