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<classification authority="sudocs">GA 1.13:GAO-04-772</classification>
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 <subject>Cost analysis</subject>
 <subject>Drugs</subject>
 <subject>Health care costs</subject>
 <subject>Health care programs</subject>
 <subject>Health insurance</subject>
 <subject>Hospitals</subject>
 <subject>Insurance claims</subject>
 <subject>Medical services rates</subject>
 <subject>Payments</subject>
 <subject>Statistical methods</subject>
 <subject>Outpatient care services</subject>
 <subject>Medicare Hospital Outpatient Prospective</subject>
 <subject>Payment System</subject>
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<titleInfo>
 <title>Medicare: Information Needed to Assess Adequacy of Rate-Setting Methodology for Payments for Hospital Outpatient Services</title>
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<abstract>Under the Medicare hospital outpatient prospective payment system
(OPPS), hospitals receive a temporary additional payment for	 
certain new drugs and devices while data on their costs are	 
collected. In 2003, these payments expired for the first time for
many drugs and devices. To incorporate these items into OPPS, the
Centers for Medicare &amp; Medicaid Services (CMS) used its 	 
rate-setting methodology that calculates costs from charges	 
reported on claims by hospitals. At that time, some drug and	 
device industry representatives noted that payment rates for many
of these items decreased and were concerned that hospitals may	 
limit beneficiary access to these items if they could not recover
their costs. GAO was asked to examine whether the OPPS		 
rate-setting methodology results in payment rates that uniformly 
reflect hospitals&apos; costs for providing drugs and devices, and	 
other outpatient services, and if it does not, to identify	 
specific factors of the methodology that are problematic.</abstract>
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<subject>
 <topic>Cost analysis</topic>
 <topic>Drugs</topic>
 <topic>Health care costs</topic>
 <topic>Health care programs</topic>
 <topic>Health insurance</topic>
 <topic>Hospitals</topic>
 <topic>Insurance claims</topic>
 <topic>Medical services rates</topic>
 <topic>Payments</topic>
 <topic>Statistical methods</topic>
 <topic>Outpatient care services</topic>
 <topic>Medicare Hospital Outpatient Prospective</topic>
 <topic>Payment System</topic>
</subject>
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  <title>United States Statutes at Large</title>
  <partNumber>Volume 111 Page 251</partNumber>
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 <identifier type="Statute citation">111 Stat. 251</identifier>
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  <title>United States Statutes at Large</title>
  <partNumber>Volume 113 Page 1501A-321</partNumber>
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 <identifier type="Statute citation">113 Stat. 1501A-321</identifier>
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  <title>United States Statutes at Large</title>
  <partNumber>Volume 117 Page 2066</partNumber>
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 <identifier type="Statute citation">117 Stat. 2066</identifier>
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 <titleInfo>
  <title>United States Public Law 33 (105th Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 105-33</identifier>
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<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 113 (106th Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 106-113</identifier>
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 <titleInfo>
  <title>United States Public Law 173 (108th Congress)</title>
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