CMS To Reverse Rate Cut Related To Two-Midnight Rule For Medicare Payments For Inpatient Stays

On April 18, 2016, the federal Centers for Medicare & Medicaid Services (CMS) proposed reversing a proposed 0.2% rate cut related to a proposed easing of the “Two-Midnight Rule” for some inpatient hospital stays. The proposed rate cut affected the Medicare 2016 Inpatient Prospective Payment System (IPPS) rates, and was intended to account for higher IPPS costs for reimbursing for hospital stays lasting less than two midnights. CMS is now proposing to cover stays shorter than two midnights.

The “Two-Midnight Rule” has been in effect since October 1, 2013, but enforcement as been partially delayed through December . . .