CMS Releases Proposed FY 2022 Medicare Inpatient Prospective Payment Systems for Acute Care, Long-Term Care Hospitals

April 28, 2021

The Centers for Medicare and Medicaid Services (CMS) recently released an unpublished proposed rule that would update Medicare payment policies for hospitals under the Inpatient Prospective Payment System (IPPS) and the Long-Term Care Hospital (LTCH) Prospective Payment System (PPS) for fiscal year (FY) 2022. The proposed rule is scheduled for publication in the Federal Register on May 10.

The rule includes a proposed 2.8% increase in operating payment rates for general acute care hospitals paid under the IPPS that successfully participate in the Hospital Inpatient Quality Reporting (IQR) Program and are meaningful electronic health record (EHR) users. 

CMS proposes to extend New Technology Add-on Payments for 14 technologies that otherwise would be discontinued in FY 2022. CMS also proposes to extend New COVID-19 Treatments Add-on Payment (NCTAP) for eligible products through the end of the fiscal year in which the COVID-19 public health emergency ends. The proposed rule would also repeal the collection of market-based rate information on the Medicare cost report and the market-based Medicare severity-diagnosis related group (MS-DRG) relative weight methodology, as finalized in the FY 2021 final rule.

Additionally, CMS clarified how MS-DRG codes for chimeric antigen receptor (CAR) T-cell therapies and non-CAR T-cell therapy products would be assigned. In response to public comments, the agency introduced several new procedure codes that describe the administration of these therapies. CMS also proposes to revise the title for Pre-MDC MS-DRG 018 “CAR T-cell Immunotherapy” to “CAR T-cell and Other Immunotherapies” to better reflect the cases reporting the administration of non-CAR T-cell therapies and other immunotherapies that would also be assigned to this MS-DRG.

CMS released a fact sheet that summarizes key provisions of the proposed rule. CMS is accepting comments on the proposed rule through June 28.

AABB is developing a summary of the proposed rule's key provisions for the blood and biotherapies community for release in the near future.