Medicare Low Volume Adjustment

Written on January 2, 2013

Section 605 of the “Fiscal Cliff” legislation, passed on January 1, 2013, extends the Medicare Low Volume Adjustment for hospitals which meet certain discharge and distance criteria.  As you know, this additional payment was based on a sliding scale and added as much as 25% to the Diagnosis Related Group (DRG) payment of hospitals meeting the qualification criteria.  The adjustment expired October 1, 2012 and is now extended through Federal Fiscal Year 2013.  Any hospital which received the adjustment in 2011 and 2012 should send to their intermediary the necessary re-application certifying that they continue to qualify for this payment.  We anticipate that the Centers for Medicare and Medicaid Services (CMS) will issue guidance on any new providers that may qualify as well as revised dates for submitting documentation.

Warren Averett will continue to keep you updated as we hear further information.  Please contact your Warren Averett advisor if you have any questions or concerns.

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