Medicare Program; Inpatient Hospital Deductible and Hospital and Extended Care Services Coinsurance Amounts for CY 2014
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SUMMARY: This notice announces the inpatient hospital deductible and the hospital and extended care services coinsurance amounts for services furnished in calendar year (CY) 2014 under
DATES: Effective Date: This notice is effective on
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: Section 1813 of the Social Security Act (the Act) provides for an inpatient hospital deductible to be subtracted from the amount payable by
II. Computing the Inpatient Hospital Deductible for CY 2014
Section 1813(b) of the Act prescribes the method for computing the amount of the inpatient hospital deductible. The inpatient hospital deductible is an amount equal to the inpatient hospital deductible for the preceding CY, adjusted by our best estimate of the payment-weighted average of the applicable percentage increases (as defined in section 1886(b)(3)(B) of the Act) used for updating the payment rates to hospitals for discharges in the fiscal year (FY) that begins on
Under section 1886(b)(3)(B)(i)(XX) of the Act, the percentage increase used to update the payment rates for FY 2014 for hospitals paid under the inpatient prospective payment system is the market basket percentage increase, otherwise known as the market basket update, reduced by 0.3 percentage points (see section 1886(b)(3)(B)(xii)(II) of the Act), and an adjustment based on changes in the economy-wide productivity (the multifactor productivity (MFP) adjustment (see section 1886(b)(3)(B)(xi)(II) of the Act). Under section 1886(b)(3)(B)(viii) of the Act, hospitals will receive this update only if they submit quality data as specified by the Secretary of the
Under section 1886(b)(3)(B)(ii)(VIII) of the Act, the percentage increase used to update the payment rates for FY 2014 for hospitals excluded from the inpatient prospective payment system is as follows:
* For FY 2014, the percentage increase for long term care hospitals is the market basket percentage increase reduced by 0.3 percentage points and the MFP adjustment (see sections 1886(m)(3)(A) and 1886(m)(4)(C) of the Act).
* For FY 2014, the percentage increase for inpatient rehabilitation facilities is the market basket percentage increase reduced by 0.3 percentage points and the MFP adjustment (see sections 1886(j)(3)(C) and 1886(j)(3)(D)(ii) of the Act).
* For FY 2014, the percentage increase used to update the payment rate for psychiatric hospitals is the market basket percentage increase reduced by 0.1 percentage points and the MFP adjustment (see sections 1886(s)(2)(A)(ii) and 1886(s)(3)(B) of the Act).
The Inpatient Prospective Payment System market basket percentage increase for 2014 is 2.5 percent and the MFP adjustment is 0.5 percent, as announced in the final rule with comment period published in the
To develop the adjustment to reflect changes in real case-mix, we first calculated an average case-mix for each hospital that reflects the relative costliness of that hospital's mix of cases compared to those of other hospitals. We then computed the change in average case-mix for hospitals paid under the
Section 1813 of the Act requires that the inpatient hospital deductible be adjusted only by that portion of the case-mix change that is determined to be real. We estimate that the change in real case mix will be 1.0 percent.
Thus, the estimate of the payment-weighted average of the applicable percentage increases used for updating the payment rates is 1.73 percent, and the real case-mix adjustment factor for the deductible is 1.0 percent. Therefore, under the statutory formula, the inpatient hospital deductible for services furnished in CY 2014 is
III. Computing the
The coinsurance amounts provided for in section 1813 of the Act are defined as fixed percentages of the inpatient hospital deductible for services furnished in the same CY. The increase in the deductible generates increases in the coinsurance amounts. For inpatient hospital and extended care services furnished in CY 2014, in accordance with the fixed percentages defined in the law, the daily coinsurance for the 61st through 90th day of hospitalization in a benefit period will be
IV. Cost to Medicare Beneficiaries
Table 1 below summarizes the deductible and coinsurance amounts for CYs 2013 and 2014, as well as the number of each that is estimated to be paid.
.... Table 1--Part A Deductible and Coinsurance Amounts for Calendar Years 2013
.... and 2014 Type of Cost Sharing
...................................... Value............ Number paid (in
..........................................................millions)
....................................2013......2014......2013......2014
Inpatient hospital deductible........
Daily coinsurance for 61st-90th Day 296...... 304...... 2.04......2.09
Daily coinsurance for lifetime......592...... 608...... 1.02......1.04
reserve days
SNF coinsurance.................... 148...... 152...... 42.10.... 43.40
The estimated total increase in costs to beneficiaries is about
V. Waiver of Proposed Notice and Comment Period
The
--This is a summary of a
Notice.
RIN Number: "RIN 0938-AR59"
Citation: "78 FR 64953"
Document Number: "CMS-8053-N"
Federal Register Page Number: "64953"
"Notices"
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