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GAO-04-761R 1 (2004-05-24)

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

          B-294033


          May 24, 2004

          The Honorable Charles E. Grassley
          Chairman
          The Honorable Max Baucus
          Ranking Minority Member
          Committee on Finance
          United States Senate

          The Honorable William M. Thomas
          Chairman
          The Honorable Charles B. Rangel
          Ranking Minority Member
          Committee on Ways and Means
          House of Representatives

          Subject: Department of Health and Human Services, Centers for Medicare and
                  Medicaid Services: Medicare Program, Changes to the Criteria for Being
                  Classified as an Inpatient Rehabilitation Facility

          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, Centers
          for Medicare and Medicaid Services (CMS), entitled Medicare Program; Changes to
          the Criteria for Being Classified as an Inpatient Rehabilitation Facility (RIN: 0938-
          AM71). We received the rule on April 30, 2004. It was published in the Federal
          Register as a final rule on May 7, 2004. 69 Fed. Reg. 25752.

          The final rule revises the classification criterion, commonly known as the 75
          percent rule, used to classify a hospital as an inpatient rehabilitation facility (IRF).
          The rule also modifies and expands the medical conditions listed in the regulatory
          requirements as well as temporarily lowers the percentage of patients required to fall
          within one of the specified list of medical conditions.

          The final rule has an announced effective date of July 1, 2004. The Congressional
          Review Act requires a 60-day delay in the effective date of a major rule from the date
          of publication in the Federal Register or receipt of the rule by Congress, whichever is
          later. 5 U.S.C. 801(a)(3)(A). The rule was published in the Federal Register on
          May 7, 2004. It was received by the House of Representatives on April 30, 2004, and


GAO-04-761R

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