ESRD and DMEPOS CY 2020 Final Rule

On October 31, CMS (@CMSGov) issued a final rule that updates payment policies and rates under the End-Stage Renal Disease (ESRD) Prospective Payment System (PPS) for renal dialysis services furnished to beneficiaries on or after January 1, 2020. This rule also updates the Acute Kidney Injury (AKI) dialysis payment rate for renal dialysis services furnished by ESRD facilities to individuals with AKI and finalizes changes to the ESRD Quality Incentive Program.

In addition, this rule includes:

  • Methodology for calculating fee schedule payment amounts for new Durable Medical Equipment, Prosthetics, Orthotics and Supplies (DMEPOS) items and services and making adjustments to the fee schedule amounts established using supplier or commercial prices if such prices decrease within five years of establishing the initial fee schedule amounts
  • Revises existing policies related to the competitive bidding program for DMEPOS
  • Streamlines the requirements for ordering DMEPOS items and creates one Master List of DMEPOS items that could potentially be subject to face-to-face encounter and written order prior to delivery and/or prior authorization requirements
  • Summaries of responses to requests for information on data collection resulting from the ESRD PPS technical expert panel, possible updates and improvements to the ESRD PPS wage index, and new rules for the competitive bidding of diabetic testing strips

CMS projects that the updates for CY 2020 will increase the total payments to all ESRD facilities by 1.6 percent compared with CY 2019. For hospital-based ESRD facilities, CMS projects an increase in total payments of 2.1 percent, while for freestanding facilities, the projected increase in total payments is 1.6 percent.

The final rule also includes:

  • Update to the outlier policy
  • Eligibility criteria for the Transitional Drug Add-on Payment Adjustment (TDAPA)
  • Basis of payment for the TDAPA for calcimimetics
  • Average sales price conditional policy for the application of the TDAPA
  • New and innovative renal dialysis equipment and supplies
  • Discontinuing the erythropoiesis-stimulating agent monitoring policy
  • Requests for Information

For More Information:

See the full text of this excerpted CMS Fact Sheet (Issued October 31).