Starting next year, inpatient psychiatric facilities will see a 2.2%or $100 million increase in Medicare reimbursement — more than the 1.5% or $80 million bump they received this year.
The change is being done via a notice, so the agency will not be taking comments on the matter.
The CMS said rulemaking was unnecessary because the updates don't reflect any "substantive" changes in policy.
Medicare payments to inpatient psychiatric facilities were estimated to be $4.4 billion in 2012, according the most recent federal data available. That's up slightly from $3.9 billion in 2008.
On average, Medicare beneficiaries account for about 24% of psychiatric facilities' discharges. In 2012, 301,000 beneficiaries had about 451,000 Medicare discharges from IPFs, up from 295,000 beneficiaries who accounted for almost 443,000 stays in 2008.
The facilities should also see an increase in Medicaid payments next year now that a 50-year ban on mental health institutions was successfully repealed earlier this year. That ban ended July 5.
Since the creation of Medicaid in 1965, the program has excluded payment for institutions of mental disease (IMDs) for beneficiaries 21 and over. Most residential treatment facilities for mental health and substance-use disorders with more than 16 beds did not qualify for Medicaid reimbursement.
Decades ago, states were responsible for the care of people with severe mental illness.
In April, the CMS finalized a policy allowing Medicaid managed-care plans to pay the facilities for stays lasting 15 or fewer days in a month.