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Article: CMS reverses application of payment-reduction factor to Part B inpatient ancillary services. (Medicare/Medicaid).(Centers for Medicare and Medicaid Services law for Medicare B)
- Article from:
- Healthcare Financial Management
- Article date:
- January 1, 2002
- Author:
CopyrightCOPYRIGHT 2002 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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On September 28, 2001, the Centers for Medicare and Medicaid Services (CMS) issued a program memorandum (PM A-01-125) abruptly reversing the agency's policy of applying a payment-reduction factor to the costs of hospital inpatient ancillary services covered under Medicare Part B. (a) Previously, CMS had applied a 5.8 percent payment-reduction factor for operating costs of Part B inpatient ancillary services, which comprise certain medical and other health services (eg, clinical laboratory tests and radiology services) furnished to hospital inpatients who have Medicare Part B coverage but are not entitled to Part A payment for those services.
CMS's prior policy ...