The AHA commented to the Centers for Medicare & Medicaid Services June 10 on the fiscal year 2026 inpatient prospective payment system proposed rule, expressing support for several provisions, including a proposed increase in disproportionate share hospital payments and several aspects of the agency’s quality-related proposals. However, the AHA said it was strongly concerned about proposed payment updates.

“The proposed net payment update of 2.4% is simply inadequate given the unrelenting financial headwinds faced by hospitals and health systems,” the AHA wrote. “We are particularly concerned with the inappropriately large productivity cut that is being proposed. We urge the agency to re-examine the magnitude of this adjustment and its impact on Medicare payments.”

The AHA was also concerned about CMS’ proposal to include Medicare Advantage patients in the Hospital Readmissions Reduction Program, saying that including MA patients in calculating readmissions penalties would effectively hold hospitals accountable for excessive and inappropriate coverage delays and denials on the part of MA plans.

Related News Articles

Headline
The AHA Aug. 28 expressed support for the Preserving Patient Access to Accountable Care Act in comments to House and Senate sponsors of the bill. The…
Headline
The Department of Health and Human Services and the Centers for Medicare & Medicaid Services Aug. 21 announced the creation of a Healthcare Advisory…
Headline
A JAMA study published Aug. 18 found that plan design changes by Medicare Part D insurers, particularly for Medicare Advantage plans, following passage of the…
Headline
The Centers for Medicare & Medicaid Services Aug. 1 issued a final rule for the inpatient psychiatric facility prospective payment system for fiscal year…
Headline
The Centers for Medicare & Medicaid Services July 31 issued a final rule that would increase Medicare inpatient prospective payment system rates by a net 2…
Chairperson's File
Public
The recently enacted One Big Beautiful Bill Act will bring big changes to health care. AHA President and CEO Rick Pollack joined me for a Leadership Dialogue…