CMS Drops Controversial “Two-Midnight Rule” Payment Cut

2017 payments to increase by about 0.8%

The Centers for Medicare and Medicaid Services (CMS) will no longer enforce inpatient payment cuts under the controversial “two-midnight” rule, according to a statement released by the agency. Instead of continuing plans for a 0.2% cut in Medicare reimbursement, the CMS plans a temporary increase of 0.6% in fiscal year 2017 to offset the estimated cost of the two-midnight rule policy.