Medicare Advantage Growth Rate Raises Concern Over Inpatient Prospective Payment System

The reported national average fee-for-service growth rate for Medicare Advantage plans in 2010 has raised concerns that the fiscal year 2010 inpatient prospective payment system update could be very small, according a news release from the American Hospital Association.

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According to projections released by CMS, the fiscal year 2010 PPS update factor for Medicare Part A could be -0.9 percent, indicating that CMS could include a modest fiscal year 2010 IPPS update factor.

According to the release, reasons for this low projection could include an estimated market basket update of 2.2 percent, which is lower than in the past, and an anticipated behavioral offset cut that is related to Medicare-Severity diagnosis-related groups.

Read the AHA’s news release on projected IPPS update factor concerns.

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