[Federal Register Volume 67, Number 221 (Friday, November 15, 2002)]
[Rules and Regulations]
[Pages 69146-69147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-29075]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

42 CFR Parts 405 and 419

[CMS-1206-CN]
RIN 0938-AL19


Medicare Program; Changes to the Hospital Outpatient Prospective 
Payment System and Calendar Year 2003 Payment Rates; and Changes to 
Payment Suspension for Unfiled Cost Reports; Correction

AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.

ACTION: Correction of final rule with comment period.

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SUMMARY: This document corrects errors that appeared in the final rule 
with comment period published in the Federal Register on November 1, 
2002 entitled ``Changes to the Hospital Outpatient Prospective Payment 
System and Calendar Year 2003 Payment Rates; and Changes to Payment 
Suspension for Unfiled Cost Reports.'' This notice is a supplement to 
the November 1, 2002 final rule with comment period.

EFFECTIVE DATE: November 1, 2002.

FOR FURTHER INFORMATION CONTACT: Anita Heygster, (410) 786-0378.

SUPPLEMENTARY INFORMATION:

I. Background

    In FR Doc. 02-27548 of November 1, 2002 (67 FR 66718), we omitted 
addresses and instructions for submitting public comments and language 
that justified waiving notice and comment procedures for two specific 
policies. This notice is a supplement to the November 1, 2002 final 
rule with comment period, and sets forth our rationale for waiving the 
notice and comment period for certain provisions. More detail regarding 
this correction is provided in the Correction of Errors section below. 
The provisions in this correction notice are effective as if they had 
been included in the document published November 1, 2002. Accordingly, 
the corrections are effective January 1, 2003.

II. Correction of Errors

    In FR Doc. 02-27548 of November 1, 2002 (67 FR 66719), make the 
following corrections:
    1. On page 66718, at the top of the second column, immediately 
preceding the heading FOR FURTHER INFORMATION CONTACT, insert the 
following language:
    ``ADDRESSES: In commenting, please refer to file code CMS-1206-FC.

[[Page 69147]]

Because of staff and resource limitations, we cannot accept comments by 
facsimile (FAX) transmission. Mail written comments (one original and 
two copies) to the following address only: Centers for Medicare & 
Medicaid Services, Department of Health and Human Services, Attention: 
CMS-1206-FC, P.O. Box 8018, Baltimore, MD 21244-8018.
    Please allow sufficient time for mailed comments to be timely 
received in the event of delivery delays.
    If you prefer, you may deliver (by hand or courier) your written 
comments (one original and two copies) to one of the following 
addresses: Room 445-G, Hubert H. Humphrey Building, 200 Independence 
Avenue, SW., Washington, DC 20201, or Room C5-14-03, 7500 Security 
Boulevard, Baltimore, MD 21244-1850. (Because access to the interior of 
the HHH Building is not readily available to persons without Federal 
Government identification, commenters are encouraged to leave their 
comments in the CMS drop slots located in the main lobby of the 
building. A stamp-in clock is available for persons wishing to retain a 
proof of filing by stamping in and retaining an extra copy of the 
comments being filed.) Comments mailed to the addresses indicated as 
appropriate for hand or courier delivery may be delayed and could be 
considered late.
    Inspection of Public Comments: Comments received timely will be 
available for public inspection as they are received, generally 
beginning approximately 3 weeks after publication of a document, at the 
headquarters of the Centers for Medicare & Medicaid Services, 7500 
Security Boulevard, Baltimore, Maryland 21244, Monday through Friday of 
each week from 8:30 a.m. to 4 p.m. To schedule an appointment to view 
public comments, call (410) 786-7197.''
    2. On page 66813, at the end of the first column, insert the 
following section:

``XVI. Waiver of Proposed Rulemaking

    We ordinarily publish a notice of proposed rulemaking in the 
Federal Register and invite public comment on the proposed rule. The 
notice of proposed rulemaking includes a reference to the legal 
authority under which the rule is proposed, and the terms and 
substances of the proposed rule or a description of the subjects and 
issues involved. This procedure can be waived, however, if an agency 
finds good cause that a notice-and-comment procedure is impracticable, 
unnecessary, or contrary to the public interest and incorporates a 
statement of the finding and its reasons in the rule issued.
    While this final rule with comment finalizes provisions set forth 
in the August 9, 2002 proposed rule (67 FR 52092), the following 
policies were not included in that rule and are subject to comment. We 
are issuing APC assignments for codes that are new for 2003 as final 
with comment because we believe that it is necessary to avoid harm to 
hospitals and beneficiaries and because it is necessary to implement 
the requirements of the HIPAA when it becomes effective for all 
providers and payers in October 2003. Specifically, APC assignments for 
new codes are necessary for hospitals to be able to report the services 
they furnish and to be properly paid for them. To do otherwise would 
leave hospitals no other option but to report incorrect codes and to 
receive incorrect payments for the services that should be reported 
under the new codes. New HCPCS codes for the forthcoming year are not 
announced by the American Medical Association (with regard to the 
current procedural terminology, CPT portion of HCPCS) and by CMS (with 
regard to the alpha numeric portion of HCPCS) until September of each 
year for the forthcoming year. Hence, CMS is not able to include most 
new codes and proposed APC assignments in its annual notice of proposed 
rulemaking for OPPS. Where possible, we do include mid year G codes and 
proposed codes in the proposed rule but these represent a very limited 
subset of the many changes that occur in HCPCS coding each year.
    Similarly, recognition of new codes for 2003 is necessary for both 
CMS and hospitals to comply with the requirements of HIPAA that will 
require all providers to use HCPCS codes no later than October 16, 
2003. For CMS to not recognize HCPCS codes that are new for 2003 until 
2004 would be to violate these requirements.
    We are issuing the change to our policy regarding influenza and 
pneumococcal pneumonia vaccines as final with comment because we 
believe that this change in policy is necessary to protect the health 
of the Medicare population. As we discussed previously this notice is a 
supplement to the November 1, 2002 final rule with comment period. In 
this preamble, we have had considerable discussions in which we have 
been advised by providers that OPPS payment was insufficient for them 
to be able to guarantee that they would be able to offer these 
important vaccines to the Medicare patients they treat. They cited the 
timing of updates to the OPPS (which go into effect in January, 9 
months before the start of the flu and PPV immunization season) and the 
volatility of the costs as a result of irregular supplies as their main 
concern. Each year a new vaccine is produced; the cost of the vaccine 
is frequently higher than the previous year's cost. Thus from September 
through December, providers paid under the OPPS for administering flu 
vaccines (which include home health agencies, which immunize many 
beneficiaries, homebound and otherwise) do not receive benefit of the 
update that will occur the following January. We believe that paying 
for influenza and PPV vaccines based on reasonable cost is the best way 
we can ensure that we maximize the potential for providers to secure 
the vaccine they need to immunize the Medicare population and that 
therefore, implementing this change as a final policy with public 
comment is justified.
    Therefore, we find good cause to waive notice and comment 
procedures and to implement these policies as final with a comment 
period. We are providing a 60-day public comment period.

III. Waiver of Proposed Rulemaking

    We ordinarily publish a notice of proposed rulemaking in the 
Federal Register to provide a period for public comment before the 
provisions of a rule take effect. We can waive this procedure, however, 
if we find good cause that notice and comment procedure is 
impracticable, unnecessary, or contrary to the public interest and 
incorporate a statement of the finding and the reasons for it into the 
rule issued.
    For the two policies addressed above in Section II., Correction of 
Errors, and for the reasons set forth in that section, we find it 
unnecessary to undertake notice and comment rulemaking. Therefore, we 
find good cause to waive notice and comment procedures.

(Catalog of Federal Domestic Assistance Program No. 93.773, 
Medicare--Hospital Insurance; and Program No. 93.774, Medicare--
Supplementary Medical Insurance Program)

    Dated: November 6, 2002.
Ann Agnew,
Executive Secretary to the Department.
[FR Doc. 02-29075 Filed 11-14-02; 8:45 am]
BILLING CODE 4120-01-P