On June 21, 2022, the Centers for Medicare & Medicaid Services (CMS) issued a proposed rule to update payment rates and policies under the End Stage Renal Disease (ESRD) Prospective Payment System (PPS) for renal dialysis services furnished to Medicare beneficiaries for the year beginning January 1, 2023.
Under the ESRD PPS for 2023, Medicare expects to pay $8.2 billion to approximately 7,800 ESRD facilities for furnishing dialysis services. The proposed 2023 ESRD PPS base rate is $264.09, which would be an increase of $6.19 to the current base rate of $257.90. CMS projects that the updates for CY 2023 would increase the total payments to all ESRD facilities by 3.1% compared with CY 2022.
Medicare uses a formula to update payments to providers based on their input costs, such as wages. However, the data used is not recent and does not account for the inflation and increased labor costs experience over the past year.
