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CMS sets new tech add-on payment deadline

This article was originally published in The Gray Sheet

Executive Summary

Device makers have until Nov. 20 to submit applications for fiscal year 2011 new technology add-on payments. Under the agency's Inpatient Prospective Payment System, hospitals using a new high-cost medical service or device may receive additional payment, allowing time for claims data to capture the cost of using the new technology within diagnosis related group codes, if the technology is deemed to substantially improve the diagnosis or treatment of Medicare beneficiaries. Last November, six firms applied for the add-on bonus (1"The Gray Sheet" Dec. 1, 2008). However, in the 2010 IPPS rule released July 31, only one device, Spiration's IBV Valve System for post-operative air leaks in the lung, was granted the add-on payment (2"The Gray Sheet" Aug. 10, 2009). Starting Oct. 31, CMS will pay a bonus of up to $3,427.50 for claims involving the device

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