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Medicare’s new technology bonus payments

Executive Summary

CMS is proposing a July 1 FDA approval deadline for products that are candidates for extra reimbursement under Medicare's inpatient payment rules. Medicare boosts hospital reimbursement for technologies that have been on the market for less than three years, demonstrate "substantial clinical improvement" over existing therapies, and would not be adequately reimbursed by Medicare. CMS says a July deadline would allow time for adequate review and avoid devoting resources to in-depth evaluation of products that do not come to market in time for a final decision by Oct. 1, when the add-on payments take effect. The change is outlined in proposed rules governing the Medicare inpatient prospective payment system for FY 2009, slated for Federal Register publication April 30

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