CMS discontinues IPPS low wage index policy for FY 2025 in interim final rule

The Centers for Medicare & Medicaid Services Sept. 30 issued an interim final rule which will discontinue the hospital inpatient prospective payment system low wage index policy for FY 2025. The policy was subject to litigation, and the Court of Appeals for the D.C. Circuit July 23 held that the secretary lacked authority under the "adjustments" section of the statute to adopt the policy and its related budget neutrality adjustment. CMS stated in the rule that while it disagreed with the court's decision, after consideration, it will remove the low wage index policy for FY 2025 and its related budget neutrality adjustment.