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Cost Estimates for Cost Outlier Cases Under Medicare's Prospective Payment System

Cost Estimates for Cost Outlier Cases Under Medicare's Prospective Payment System
Author: Grace M. Carter
Publisher:
Total Pages: 35
Release: 1994
Genre: Electronic book
ISBN: 9780833015075

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The authors studied the ratio of costs to charges (RCC) used to estimate the cost of Medicare hospital cases in the formula which sets cost outlier payments. The authors estimate that, under current payment policy, the cost of the average cost outlier case is overestimated by 23 percent. The causes of this overestimate are a secular decline in RCC of between 2 and 3 percent a year and the fact that cost outlier cases typically receive a higher percentage of ancillary charges that have a very low actual RCC. The inaccurate estimate of the cost of cost outlier cases contravenes current policy intent in two important ways. First, it changes the fraction of the excess costs that are insured from the intended 75 percent to 92 percent. Secondly, cases face different cost outlier thresholds, and therefore receive different payment amounts, depending on the mix of ancillary and accommodation services required by the patient. It would be possible to improve the measurement of the cost of cost outlier cases by using separate RCCs for ancillary and accommodation charges. The outcomes of alternative policies are estimated in the report.


Payment Rates for Unusual Medicare Hospital Cases

Payment Rates for Unusual Medicare Hospital Cases
Author: Grace M. Carter
Publisher:
Total Pages: 70
Release: 1992
Genre: Medical
ISBN:

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This report examines the formulas that the Health Care Financing Administration (HCFA) uses to pay for the extra expenses incurred by unusual hospital cases (outliers) and recommends changes in these formulas. Outlier payments are those made in addition to the regular diagnosis-related-group payment and are designed to reduce hospitals' financial risks and their financial incentives to refuse to serve, or to underserve, exceptionally costly cases. There are two kinds of outliers--day outliers (cases that remain in the hospital beyond a certain number of days) and cost outliers (cases whose standardized charges exceed a cost threshold). The authors describe how the average cost of day outlier cases increases as a function of length of stay. They also consider the forms of the day outlier per diem and the cost outlier threshold, which determines which cases will be paid as outliers and the amount of the payment. The authors find a large percentage of day outlier payments go to profitable cases, which is contrary to policy intent. They recommend a reduction in the day outlier per diem to the level that would provide the same coinsurance to day and cost outliers. They suggest replacing the current formula for the cost outlier threshold with a fixed loss cost outlier threshold.


Improving Medicare's Policy for Payment of Unusual Hospital Cases

Improving Medicare's Policy for Payment of Unusual Hospital Cases
Author: Grace M. Carter
Publisher:
Total Pages: 116
Release: 1992
Genre: Diagnosis related groups
ISBN:

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In FY 1989, the Health Care Financing Agency (HCFA) changed the amount it would pay for extremely long or costly Medicare hospital stays called outliers. Based on a 20% sample of Medicare hospitalizations as recorded in the Medicare Provider Analysis and Review (MEDPAR) file, the authors compared the distribution of outlier payments under the FY 1989 policy with the FY 1988 distribution under the previous policy; described the extent to which each policy provided reimbursement to the most costly cases and examined the distribution of outlier payments among other patient groups and among hospital groups; and estimated the effect of outlier payments on hospitals' financial risk using the methodology developed in Keeler et al. (1988). The authors examined three characteristics of stays that hospitals might have changed in response to the incentives inherent in outlier policy: (1) the resources provided to long-staying patients, (2) the discharge rate near the old outlier threshold, and (3) the concentration of very expensive cases in public hospitals in large urban areas. The outlier policy appears to have accomplished several goals. In particular, the new policy succeeded in: concentrating outlier funds on the costliest cases; providing more funds to hospitals with cases that are more costly than average for their Diagnosis Related Group (DRG); and decreasing risk by 5% from what it would have been if the policy had not changed. The study also identified two problems with existing outlier policy: (1) day outlier payments frequently exceed the cost of the services delivered; and (2) the formula for setting cost outlier thresholds produces less than optimum protection from risk. Although the changes were not large, the authors found some evidence that hospitals responded to the outlier policy change both by increasing length of stay and increasing the services delivered to the most costly patients. They judge that this analysis increases the strength of the argument for using case-based rather than hospital-based outlier payments.


Medicare's Disproportioinate Share Adjustment and the Cost of Low-income Patients

Medicare's Disproportioinate Share Adjustment and the Cost of Low-income Patients
Author: Gerald F. Kominski
Publisher:
Total Pages: 190
Release: 1997
Genre: Hospital utilization
ISBN:

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This study investigates whether or not hospitals have higher costs for inpatient care provided to low-income Medicare patients, after controlling for other cost differences already accounted for by Medicare payments. Differences were estimated in Prospective Payment System-adjusted costs and outlier-adjusted length of stay for low-income patients relative to matching non-low-income cases from the same hospital in 85 high-volume diagnosis-related groups. Low-income Medicare patients do not have costlier hospital stays, although their stays are 2.5% longer. The authors conclude that disproportionate share payments are not justified on grounds of higher treatment costs.


Medicare and Medicaid Programs - Cy 2017 Home Health Prospective Payment System Rate Update - Home Health Value-Based Purchasing Model (Us Centers for Medicare and Medicaid Services Regulation) (Cms) (2018 Edition)

Medicare and Medicaid Programs - Cy 2017 Home Health Prospective Payment System Rate Update - Home Health Value-Based Purchasing Model (Us Centers for Medicare and Medicaid Services Regulation) (Cms) (2018 Edition)
Author: The Law The Law Library
Publisher: Createspace Independent Publishing Platform
Total Pages: 182
Release: 2018-07-04
Genre:
ISBN: 9781722438784

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Medicare and Medicaid Programs - CY 2017 Home Health Prospective Payment System Rate Update - Home Health Value-Based Purchasing Model (US Centers for Medicare and Medicaid Services Regulation) (CMS) (2018 Edition) The Law Library presents the complete text of the Medicare and Medicaid Programs - CY 2017 Home Health Prospective Payment System Rate Update - Home Health Value-Based Purchasing Model (US Centers for Medicare and Medicaid Services Regulation) (CMS) (2018 Edition). Updated as of May 29, 2018 This final rule updates the Home Health Prospective Payment System (HH PPS) payment rates, including the national, standardized 60-day episode payment rates, the national per-visit rates, and the non-routine medical supply (NRS) conversion factor; effective for home health episodes of care ending on or after January 1, 2017. This rule also: Implements the last year of the 4-year phase-in of the rebasing adjustments to the HH PPS payment rates; updates the HH PPS case-mix weights using the most current, complete data available at the time of rulemaking; implements the 2nd-year of a 3-year phase-in of a reduction to the national, standardized 60-day episode payment to account for estimated case-mix growth unrelated to increases in patient acuity (that is, nominal case-mix growth) between CY 2012 and CY 2014; finalizes changes to the methodology used to calculate payments made under the HH PPS for high-cost "outlier" episodes of care; implements changes in payment for furnishing Negative Pressure Wound Therapy (NPWT) using a disposable device for patients under a home health plan of care; discusses our efforts to monitor the potential impacts of the rebasing adjustments; includes an update on subsequent research and analysis as a result of the findings from the home health study; and finalizes changes to the Home Health Value-Based Purchasing (HHVBP) Model, which was implemented on January 1, 2016; and updates to the Home Health Quality Reporting Program (HH QRP). This book contains: - The complete text of the Medicare and Medicaid Programs - CY 2017 Home Health Prospective Payment System Rate Update - Home Health Value-Based Purchasing Model (US Centers for Medicare and Medicaid Services Regulation) (CMS) (2018 Edition) - A table of contents with the page number of each section


Medicare Outlier Payments to Hospitals

Medicare Outlier Payments to Hospitals
Author: United States. Congress. Senate. Committee on Appropriations. Subcommittee on Departments of Labor, Health and Human Services, Education, and Related Agencies
Publisher:
Total Pages: 56
Release: 2004
Genre: Hospitals
ISBN:

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