Late News: CMS wants Medicare rates for acute-care to stay same in ’10

The CMS wants Medicaid payments to acute-care hospitals to remain largely flat for fiscal 2010, but officials warn that notable payment decreases are planned for 2011 and 2012. For 2010, the CMS proposes a 2.1% annual inflation increase in Medicare payments to acute-care hospitals, which would be largely wiped out by a 1.9% decrease in inpatient prospective payments intended to remove the effects of hospital coding practices, according to a proposed rule in the Federal Register. In issuing the offsetting inflation increases and payment decreases for 2010, the CMS said in a news release that it is attempting to correct for adjustments made by hospitals that resulted in 8.5% higher payments since a classification system was enacted in 2008. Federal auditors contend that no meaningful rise in patient acuity accompanied the rise in payments. CMS officials said the law requires them to impose an additional 6.6% in cuts by 2012. The CMS is accepting public comments on the proposed rule until June 30.