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CMS summarizes retroactive Medicare changes under budget bill

CMS summarizes retroactive Medicare changes under budget bill
February 13, 2006

The Centers for Medicare & Medicaid Services has released a “fact sheet” summarizing how it will implement Medicare provisions of the budget reconciliation bill that are retroactive to Jan. 1. For example, the legislation reinstates hold-harmless payments for outpatient services for rural hospitals with 100 or fewer beds, as well as higher payments for physician services. CMS said it is developing a way to reinstate any payments that were reduced to the rural hospitals, and will reprocess at the higher rate any physician claims from January that have already been paid. The legislation also continues the suspension on new Medicare provider numbers to physician-owned limited-service hospitals for six months or until CMS releases a final strategic plan on physician investment in limited-service hospitals, whichever is sooner.