On April 10, 2023, the Centers for Medicare and Medicaid Services (CMS) issued the Inpatient Prospective Payment System (IPPS) proposed rule, which updates Medicare reimbursements by 2.8% (a 3.0% market basket update with a -0.2% productivity adjustment).

Why it matters: While radiation therapy reimbursement is typically tied to the Medicare Physician Fee Schedule (MPFS) or the Hospital Outpatient Prospective Payment System (HOPPS), the IPPS proposed rule often includes items of interest to radiation oncology related to new technologies and quality reporting. It also provides a preview of policy proposals, which may also appear in the MPFS and HOPPS proposed rules this summer.

Items of interest in the 2024 IPPS proposed rule include:

• New Technology Add-On Payments (NTAP) for New Services and Technologies
• Proposed Continuation of the Low Wage Index Hospital Policy
• Permanent Cap on Wage Index Decreases and Budget Neutrality Adjustment
• Proposed Modification to the Rural Wage Index Calculation Methodology
• PPS-Exempt Cancer Hospital Quality Reporting Program (PCHQR)
• Hospital Inpatient Quality Reporting (IQR) Program
• Medicare Promoting Interoperability Program
• Request for Information on Challenges Faced by Safety-Net Hospitals
• Proposed Changes to the Severity Level Designation for Z Codes Describing Homelessness

Comments in response to the IPPS proposed rule are due June 9, 2023.

Go deeper with ASTRO's summary on the proposed rule.