On Monday, July 2, CMS issued a proposed rule that would update Medicare 
policies and payment rates for dialysis facilities, while strengthening 
incentives for improved quality of care and better outcomes for beneficiaries 
diagnosed with End-Stage Renal Disease (ESRD).The proposals would affect 
payments for outpatient maintenance dialysis treatments furnished on or after 
January 1, 2013 under the bundled ESRD Prospective Payment System (PPS) that 
was implemented in calendar year 2011.

CMS is projecting that payment rates for dialysis treatments will increase by 
2.5 percent, representing a projected inflation (or ESRD bundled market basket) 
increase of 3.2 percent reduced by a projected productivity adjustment of 0.7 
percent. CMS estimates that payments to ESRD facilities in 2013 will total $8.7 
billion.

The proposed rule also proposes changes to the ESRD Quality Incentive Program 
(QIP) that provides payment incentives to dialysis facilities to improve the 
quality of dialysis care. Under the QIP, facilities that do not achieve a high 
enough total performance score with respect to quality measures established in 
regulation receive a reduction in their payment rates under the ESRD PPS. 
Please refer to the ESRD 
QIP<https://www.cms.gov/Medicare/End-Stage-Renal-Disease/ESRDQualityImproveInit/index.html?redirect=/ESRDQualityImproveInit/>
  website for more information.

CMS is also proposing to codify the provisions of section 3201 of the Middle 
Class Tax Extension and Job Creation Act of 2012 (Pub. L. No. 112-96) that 
requires reductions in bad debt reimbursement to all Medicare providers 
eligible to receive bad debt reimbursement; these provisions are specifically 
prescribed by statute and thus, are self-implementing. This reduction in bad 
debt reimbursement is projected to yield savings to the program of $10.9 
billion over 10 years.

The rule (CMS-1352-P) can be viewed on the ESRD Payment Regulations and 
Notices<http://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/ESRDpayment/End-Stage-Renal-Disease-ESRD-Payment-Regulations-and-Notices.html>
 website.



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