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GAO-01-453R 1 (2001-02-22)

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       Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548

          B-287283


          February 22, 2001

          The Honorable Chuck Grassley
          Chairman
          The Honorable Max Baucus
          Ranking Member
          Committee on Finance
          United States Senate

          The Honorable Bill Thomas
          Chairman
          The Honorable Charles Rangel
          Ranking Minority Member
          Committee on Ways and Means
          House of Representatives

          Subject: Department of Health and Human Services, Health Care Financing
                  Administration: Medicare Program Inpatient Hospital Deductible and
                  Hospital and Extended Care Services Coinsurance Amounts for 2001

          Pursuant to section 801(a) (2) (A) of title 5, United States Code, this is our report on a
          major rule promulgated by the Department of Health and Human Services, Health
          Care Financing Administration (HCFA), entitled Medicare Program; Inpatient
          Hospital Deductible and Hospital and Extended Care Services Coinsurance Amounts
          for 2001 (RIN: 0938-AK27). We received the notice on February 13, 2001. It was
          published in the Federal Register as a notice on October 19, 2000. 65 Fed. Reg.
          62725.

          The notice announces the inpatient hospital deductible and the hospital and
          extended care services coinsurance amounts for services furnished in calendar year
          2001 under Medicare's hospital insurance program (Medicare Part A). The Medicare
          statute specifies the formula used to determine these amounts.

          The inpatient hospital deductible will be $792. The daily coinsurance amounts will
          be: (a) $198 for the 61st through the 90' day of hospitalization in a benefit period; (b)
          $396 for lifetime reserve days; and (c) $99 for the 21st through 100' day of extended
          care services in a skilled nursing facility in a benefit period.

          Enclosed is our assessment of the HCFA's compliance with the procedural steps
          required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.


GAO-01-453R

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