CMS to Moderate Proposed Medicare Cuts

On July 17, the FEHBlog noted Robert Pear’s article in the New York Times warning that the Centers for Medicare and Medicaid Services’ proposed Medicare diagnostic related group (DRG) reforms would whack Medicare reimbursements to hospitals by 20 to 30%. Modern reports that CMS Administrator Mark McClellan stated at a press conference today that CMS now is planning to phase in the reforms over a three year period and that only 2% of hospitals would experience Medicare reimbursement reductions as a result of the reforms.