Over the last few months, medical device makers and lawmakers have pressured the Bush administration to rethink a proposed rule that would have cut Medicare reimbursements for implanted cardiac devices by up to 30 percent in an effort to close loopholes used by specialty hospitals.
The lobbying efforts worked. Under the final rule issued by the Centers for Medicare and Medicaid Services (CMS), reimbursement cuts will be smaller and phased in over three years. Groups like AdvaMed, which represents medical device makers, had asked for a year-long delay so parties could review and assess changes.
Reimbursements for cardiac specialty hospitals will decrease by more than 5 percent between 2005 and 2007, substantially less than 30 percent. Hospitals will see reimbursements increase by 3.5 percent, and only 2 percent of facilities will see a decrease. (Kaiser Network)
These changes are part of an overall effort to improve the accuracy of Medicare’s payment for inpatient stays. Mike Leavitt, Health and Human Services secretary said, “Hospital payments should promote the best care for all patients, not the treatments that happen to be most profitable, and we are now on a path to making sure that happens.” (CMS press release)
