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GAO-05-179R 1 (2004-11-29)

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       Accountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548

         B-295432


         November 29, 2004

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

         The Honorable W.J. Billy Tauzin
         Chairman
         The Honorable John D. Dingell
         Ranking Minority Member
         Committee on Energy and Commerce
         House of Representatives

         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 Hospital Outpatient
                 Prospective Payment System and Calendar Year 2005 Payment Rates

         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 Hospital Outpatient Prospective Payment System and Calendar Year 2005
         Payment Rates (RIN: 0938-AM75). We received the rule on November 3, 2004. It
         was published in the Federal Register as a final rule with comment period on
         November 15, 2004. 69 Fed. Reg. 65682.

         The final rule revises the Medicare hospital outpatient prospective payment system
         to implement applicable statutory requirements and changes arising from CMS's
         continuing experience with the system and to implement certain related provisions
         of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003.
         Also, the final rule describes final changes to the amounts and factors used to


GAO-05-179R

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