Readmission Policy Changes in Reform

1. Readmission Policy Changes in Reform Hospital Readmissions Reduction Program (Sec. 3025) Reduces hospital payments under Medicare, for hospital discharges on or after October 1, 2012, to account for �excess readmissions� In 2015 Secretary can expand the applicable conditions beyond three for which measures have already been endorsed Payment reductions would apply to ALL Medicare discharges Maximum penalty: FY 2013 -1%, FY 2014 - 2%, and FY 2015 and later - 3% Planned readmissions would be exempt. Hospitals� readmission rates would be publicly available on the CMS Hospital Compare website. HHS expected to issue regulations prior to implementation deadline with additional details

2. Readmission Policy Changes in Reform Hospital Community-Based Care Transitions Program (Sec. 3026) Starting January 1, 2011 the Secretary is required to establish a program for a 5-year period to provide funding to hospitals and community-based entities that furnish care transition services to Medicare beneficiaries at high risk for readmission Funded at $500 million for fiscal years 2011 through 2015