Medicare program; revised market basket inflation rates for provider cost limits--HCFA. General notice

In 1979 and 1980 we published in the Federal Register schedules of limits on Medicare payments for hospitals, skilled nursing facilities, and home health agencies for specific cost reporting periods. In developing and applying those limits, we used projected rates of inflation to account for anticipated increased in the prices of goods and services that these health care providers normally purchase. Because we recognized that the actual rate of increase for a year might be significantly higher than our projection, we also stated that we would make a retroactive adjustment if increases greater than a certain percentage threshold showed that it was necessary. Since we have determined that this percentage level was exceeded for some years, we are setting forth in this notice the necessary revisions. Medicare intermediaries will make these revisions and notify the affected providers.