On May 6, 2014, CMS published a proposed rule that would update prospective payment rates for Medicare inpatient hospital services provided by inpatient psychiatric facilities (IPFs) for FY 2015. Under the proposed rule, the federal per diem base rate would be increased by 2.0%, reflecting a market basket increase of 2.7%, offset by a 0.3 percentage point reduction and a productivity adjustment reduction of 0.4 percentage points (both of which were mandated by the ACA). CMS also anticipates a 0.1 percent overall increase in IPF outlier payments from the update to the outlier fixed-dollar loss threshold amount. When all FY 2015 proposed payment and policy changes are considered, CMS estimates that total payments to IPFs would increase by 2.1% compared to FY 2014 payments (approximately $100 million). The proposed rule also would, among other things, establish a new methodology for updating the cost of living adjustment (COLA) and expand quality measures under the IPF Quality Reporting Program. In the proposed rule, CMS also discusses its intention to propose an IPF-specific market basket for FY 2016, and the agency addresses various coding changes. CMS will accept comments on the proposed rule until June 30, 2014.

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