CMS proposes to increase OPPS payment rates for CY 2014 by an increase factor of 1.8 percent, which represents the proposed 2.5 percent market basket percentage increase for inpatient services paid under the hospital inpatient prospective payment system (IPPS), minus the proposed multifactor productivity adjustment of 0.4 percentage points, and minus a 0.3 percentage point adjustment required by the Affordable Care Act.  CMS estimates that proposed total payments under the OPPS for CY 2014 will be approximately $50.4 billion (including beneficiary cost-sharing), an increase of approximately $4.4 billion compared to CY 2013 payments, taking into account estimated changes in enrollment, utilization, and case-mix.  CMS estimates that under its proposal, most classes of hospitals would receive an increase that is in line with the proposed 1.8 percent overall increase after all budget neutrality adjustments are applied.

CMS proposes to increase ASC payment rates by 0.9 percent, based on a projected CPI-U update of 1.4 percent minus a multifactor productivity adjustment required by the Affordable Care Act that is projected to be 0.5 percent, resulting in total payments to ASCs for CY 2014 of approximately $3.98 billion, an increase of approximately $133 million compared to estimated CY 2013 payments.