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GAO-06-763R 1 (2006-05-17)

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

          B-298287


          May 17, 2006

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

          The Honorable Joe Barton
          Chairman
          The Honorable John D. Dingell
          Ranking Minority Member
          Committee on Energy and Commerce
          House of Representatives

          Subject: Department of Health and Human Services, Centers for Medicare and
                  Medicaid Services: Medicare Program; Inpatient Psychiatric Facilities
                  Prospective Payment System Payment Update for Rate Year Beginning
                  July 1, 2006 (RY2007)

          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; Inpatient
          Psychiatric Facilities Prospective Payment System Payment Update for Rate Year
          Beginning July 1, 2006 (RY 2007) (RIN: 0938-AN82). We received the rule on May 1,
          2006. It was published in the Federal Register as a final rule on May 9, 2006. 71 Fed.
          Reg. 27040.

          The final rule updates the prospective payment rates for Medicare inpatient
          psychiatric facilities (IPFs). The changes are applicable to IPF discharges occurring
          during the rate year beginning July 1, 2006, through June 30, 2007. In addition, CMS
          is adopting the new Office of Management and Budget (OMB) labor market area
          definitions for the purpose of geographic classification and the wage index.

          The final rule has an announced effective date of July 1, 2006. 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


GAO-06-763R

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