Two-Midnight Rule Update: CMS Proposes to Eliminate .2% Payment Reduction by Increasing FY 2017 IPPS Rates

On April 18, CMS submitted to the Federal Register (for publication on April 27) its annual notice of proposed IPPS rates and policy changes for federal fiscal year (FY) 2017. CMS’s notice contains a proposal to eliminate permanently the .2% payment reduction that CMS had implemented in FY 2014 to offset a projected net increase in IPPS cases occasioned by CMS’s Two Midnight rule.