Medicare Proposes 2.6% Boost to Psychiatric Facility Payments in FY 2021
- April 17, 2020
Inpatient Psychiatric Facilities (IPFs) would receive a 2.6%, or $75 million, Medicare payment increase in fiscal year (FY) 2021 under a proposed update to the IPF prospective payment system that the Centers for Medicare & Medicaid Services (CMS) issued April 10.
The proposed rule (85 Fed. Reg. 20625) reflects a 3.0% market basked increase, less a 0.4 percentage point productivity adjustment, according to an agency fact sheet. CMS is estimating that total payments to IPFs will decrease an additional 0.2 percentage point due to updating the outlier threshold amount. Taken together, CMS projects total IPF payments will increase by $100 million in FY 2021.
The proposed rule also would adopt Office of Management and Budget statistical area delineations, which CMS said would result in wage index values being more representative of actual labor costs in a given area.
CMS is proposing to cap any wage index decrease at 5% for FY 2021.