CJR & Other Episode Payment Models Delayed

The Trump Administration took action to freeze regulations released by federal agencies through a memo issued by Chief of Staff Reince Priebus on January 20, 2017. The memo states that agencies cannot release any new regulations or guidance documents, must pull back any regulations or guidance under review by the Office of the Federal Register, and must temporarily postpone regulations and guidance that have been published, but have yet to take effect. The purpose of the freeze is so that new Administration appointees at the various agencies can review these regulations. We believe that regulations and guidance subject to statutory or judicial deadlines are excluded from this freeze. The freeze is for 60 days from the date of the January 20, 2017 memo.

Most importantly, this action impacts the final rule, which was published in the January 3, 2017 edition of the Federal Register, on Advancing Care Coordination Through Episode Payment Models (EPMs); Cardiac Rehabilitation Incentive Payment Model; and Changes to the Comprehensive Care for Joint Replacement Model. Acting on this memo, the Centers for Medicare & Medicaid Services (CMS) has announced a delay for the February 18, 2017 effective date in the final rule implementing the three new Medicare Parts A and B episode payment models, the Cardiac Rehabilitation (CR) Incentive Payment Model, and changes to the existing Comprehensive Care for Joint Replacement Model. According to the CMS announcement, provisions of the payment rule that were to become effective on February 18, 2017 will be delayed until March 21, 2017. Provisions that were to become effective July 1, including the first performance period for the cardiac rehab model, remain effective for that date. Read the announcement in the February 17, 2017 edition of the Federal Register.