82_FR_55588 82 FR 55365 - Medicare Program; CY 2018 Part A Premiums for the Uninsured Aged and for Certain Disabled Individuals Who Have Exhausted Other Entitlement

82 FR 55365 - Medicare Program; CY 2018 Part A Premiums for the Uninsured Aged and for Certain Disabled Individuals Who Have Exhausted Other Entitlement

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services

Federal Register Volume 82, Issue 223 (November 21, 2017)

Page Range55365-55367
FR Document2017-24912

This annual notice announces Medicare's Hospital Insurance (Part A) premium for uninsured enrollees in calendar year (CY) 2018. This premium is paid by enrollees age 65 and over who are not otherwise eligible for benefits under Medicare Part A (hereafter known as the ``uninsured aged'') and by certain disabled individuals who have exhausted other entitlement. The monthly Part A premium for the 12 months beginning January 1, 2018 for these individuals will be $422. The premium for certain other individuals as described in this notice will be $232.

Federal Register, Volume 82 Issue 223 (Tuesday, November 21, 2017)
[Federal Register Volume 82, Number 223 (Tuesday, November 21, 2017)]
[Notices]
[Pages 55365-55367]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-24912]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

[CMS-8066-N]
RIN 0938-AT06


Medicare Program; CY 2018 Part A Premiums for the Uninsured Aged 
and for Certain Disabled Individuals Who Have Exhausted Other 
Entitlement

AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: This annual notice announces Medicare's Hospital Insurance 
(Part A) premium for uninsured enrollees in calendar year (CY) 2018. 
This premium is paid by enrollees age 65 and over who are not otherwise 
eligible for benefits under Medicare Part A (hereafter known as the 
``uninsured aged'') and by certain disabled individuals who have 
exhausted other entitlement. The monthly Part A premium for the 12 
months beginning January 1, 2018 for these individuals will be $422. 
The premium for certain other individuals as described in this notice 
will be $232.

DATES: Effective Date: This notice is effective on January 1, 2018.

FOR FURTHER INFORMATION CONTACT: Clare McFarland, (410) 786 6390.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 1818 of the Social Security Act (the Act) provides for 
voluntary enrollment in the Medicare Hospital Insurance Program 
(Medicare Part A), subject to payment of a monthly premium, of certain 
persons aged 65 and older who are uninsured under the Old-Age, 
Survivors, and Disability Insurance (OASDI) program or the Railroad 
Retirement Act and do not otherwise meet the requirements for 
entitlement to Medicare Part A. These ``uninsured aged'' individuals 
are uninsured under the OASDI program or the Railroad Retirement Act, 
because they do not have 40 quarters of coverage under Title II of the 
Act (or are/were not married to someone who did). (Persons insured 
under the OASDI program or the Railroad Retirement Act and certain 
others do not have to pay premiums for Medicare Part A.)
    Section 1818A of the Act provides for voluntary enrollment in 
Medicare Part A, subject to payment of a monthly premium for certain 
disabled individuals who have exhausted other entitlement. These are 
individuals who were entitled to coverage due to a disabling impairment 
under section 226(b) of the Act, but who are no longer entitled to 
disability benefits and free Medicare Part A coverage because they have 
gone back to work and their earnings exceed the statutorily defined 
``substantial gainful activity'' amount (section 223(d)(4) of the Act).
    Section 1818A(d)(2) of the Act specifies that the provisions 
relating to premiums under section 1818(d) through section 1818(f) of 
the Act for the aged will also apply to certain disabled individuals as 
described above.
    Section 1818(d)(1) of the Act requires us to estimate, on an 
average per capita basis, the amount to be paid from the Federal 
Hospital Insurance Trust Fund for services incurred in the upcoming 
calendar year (CY) (including the associated administrative costs) on 
behalf of individuals aged 65 and over who will be entitled to benefits 
under Medicare Part A. We must then determine the monthly actuarial 
rate for the following year (the per capita amount estimated above 
divided by 12) and publish the dollar amount for the monthly premium in 
the succeeding CY. If the premium is not a multiple of $1, the premium 
is rounded to the nearest multiple of $1 (or, if it is a multiple of 50 
cents but not of $1, it is rounded to the next highest $1).
    Section 13508 of the Omnibus Budget Reconciliation Act of 1993 
(Pub. L. 103-66) amended section 1818(d) of the Act to provide for a 
reduction in the premium amount for certain voluntary enrollees 
(section 1818 and section 1818A of the Act). The reduction applies to 
an individual who is eligible to buy into the Medicare Part A program 
and who, as of the last day of the previous month:
     Had at least 30 quarters of coverage under Title II of the 
Act;
     Was married, and had been married for the previous 1 year 
period, to a person who had at least 30 quarters of coverage;
     Had been married to a person for at least 1 year at the 
time of the person's death if, at the time of death, the person had at 
least 30 quarters of coverage; or
     Is divorced from a person and had been married to the 
person for at least 10 years at the time of the divorce if, at the time 
of the divorce, the person had at least 30 quarters of coverage.
    Section 1818(d)(4)(A) of the Act specifies that the premium that 
these individuals will pay for CY 2018 will be equal to the premium for 
uninsured aged enrollees reduced by 45 percent.

II. Monthly Premium Amount for CY 2018

    The monthly premium for the uninsured aged and certain disabled 
individuals who have exhausted other entitlement for the 12 months 
beginning January 1, 2018, is $422.
    The monthly premium for the individuals eligible under section 
1818(d)(4)(B) of the Act, and therefore, subject to the 45 percent 
reduction in the monthly premium, is $232.

III. Monthly Premium Rate Calculation

    As discussed in section I of this notice, the monthly Medicare Part 
A premium is equal to the estimated monthly actuarial rate for CY 2018 
rounded to the nearest multiple of $1 and equals one-twelfth of the 
average per capita amount, which is determined by projecting the number 
of Medicare Part A enrollees aged 65 years and over as well as the 
benefits and administrative costs that will be incurred on their 
behalf.
    The steps involved in projecting these future costs to the Federal 
Hospital Insurance Trust Fund are:
     Establishing the present cost of services furnished to 
beneficiaries, by type of service, to serve as a projection base;
     Projecting increases in payment amounts for each of the 
service types; and
     Projecting increases in administrative costs.
    We base our projections for CY 2018 on--(1) current historical 
data; and (2) projection assumptions derived from current law and the 
Mid-Session Review of the President's Fiscal Year 2018 Budget.
    We estimate that in CY 2018, 50,295,843 people aged 65 years and 
over will be entitled to (enrolled in) benefits (without premium 
payment) and that they will incur about $254.518 billion in benefits 
and related administrative costs. Thus, the estimated monthly average 
per capita

[[Page 55366]]

amount is $421.70 and the monthly premium is $422. Subsequently, the 
full monthly premium reduced by 45 percent is $232.

IV. Costs to Beneficiaries

    The CY 2018 premium of $422 is approximately 2 percent higher than 
the CY 2017 premium of $413. We estimate that approximately 668,000 
enrollees will voluntarily enroll in Medicare Part A, by paying the 
full premium. We estimate that over 90 percent of these individuals 
will have their Part A premium paid for by states, since they are 
enrolled in the Qualified Medicare Beneficiary Program (a Medicaid 
program which helps certain low-income individuals with Medicare 
premium and cost-sharing liability). Furthermore, the CY 2018 reduced 
premium of $232 is approximately 2 percent higher than the CY 2017 
premium of $227. We estimate an additional 71,000 enrollees will pay 
the reduced premium. Therefore, we estimate that the total aggregate 
cost to enrollees paying these premiums in CY 2018, compared to the 
amount that they paid in CY 2017, will be about $76 million.

V. Waiver of Proposed Notice and Comment Period

    We ordinarily publish a notice of proposed rulemaking in the 
Federal Register and invite public comment prior to a rule taking 
effect in accordance with section 553(b) of the Administrative 
Procedure Act (APA) and section 1871 of the Act. However, we believe 
that the policies being publicized in this document do not constitute 
agency rulemaking. Rather, the statute requires that the agency 
determine the applicable premium amount for each calendar year in 
accordance with the statutory formula, and we are simply notifying the 
public of the changes to the Medicare Part A premiums for CY 2018. To 
the extent any of the policies articulated in this document constitute 
interpretations of the statute's requirements or procedures that will 
be used to implement the statute's directive, they are interpretive 
rules, general statements of policy, and rules of agency organization, 
procedure, or practice, which are not subject to notice and comment 
rulemaking under the APA.
    To the extent that notice and comment rulemaking would otherwise 
apply, we find good cause to waive this requirement. Under the APA, we 
may waive notice and public procedure if we find good cause that prior 
notice and comment are impracticable, unnecessary, or contrary to the 
public interest. We believe that notice and comment rulemaking for this 
notification of Medicare Part A premiums for CY 2018 is unnecessary 
because of the lack of CMS discretion in the statutory formula that is 
used to calculate the premium and the solely ministerial function that 
this notice serves. Therefore, we find good cause to waive notice and 
comment procedures, if such procedures are required at all.

VI. Collection of Information Requirements

    This document does not impose information collection requirements, 
that is, reporting, recordkeeping or third-party disclosure 
requirements. Consequently, there is no need for review by the Office 
of Management and Budget under the authority of the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.).

VII. Regulatory Impact Statement

A. Statement of Need

    Section 1818(d) of the Act requires the Secretary of the Department 
of Health and Human Services (the Secretary) during September of each 
year to determine and publish the amount to be paid, on an average per 
capita basis, from the Federal Hospital Insurance Trust Fund for 
services incurred in the impending CY (including the associated 
administrative costs) on behalf of individuals aged 65 and over who 
will be entitled to benefits under Medicare Part A.

B. Overall Impact

    We have examined the impacts of this notice as required by 
Executive Order 12866 on Regulatory Planning and Review (September 30, 
1993), Executive Order 13563 on Improving Regulation and Regulatory 
Review (January 18, 2011), the Regulatory Flexibility Act (RFA) 
(September 19, 1980, Pub. L. 96-354), section 1102(b) of the Social 
Security Act, section 202 of the Unfunded Mandates Reform Act of 1995 
(March 22, 1995; Pub. L. 104-4), Executive Order 13132 on Federalism 
(August 4, 1999), the Congressional Review Act (5 U.S.C. 804(2)) and 
Executive Order 13771 on Reducing Regulation and Controlling Regulatory 
Costs (January 30, 2017).
    Executive Orders 12866 and 13563 direct agencies to assess all 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Section 
3(f) of Executive Order 12866 defines a ``significant regulatory 
action'' as an action that is likely to result in a rule: (1) Having an 
annual effect on the economy of $100 million or more in any 1 year, or 
adversely and materially affecting a sector of the economy, 
productivity, competition, jobs, the environment, public health or 
safety, or state, local or tribal governments or communities (also 
referred to as ``economically significant''); (2) creating a serious 
inconsistency or otherwise interfering with an action taken or planned 
by another agency; (3) materially altering the budgetary impacts of 
entitlement grants, user fees, or loan programs or the rights and 
obligations of recipients thereof; or (4) raising novel legal or policy 
issues arising out of legal mandates, the President's priorities, or 
the principles set forth in the Executive Order. As stated in section 
IV of this notice, we estimate that the overall effect of the changes 
in the Part A premium will be a cost to voluntary enrollees (section 
1818 and section 1818A of the Act) of about $76 million. As a result, 
this notice is non-economically significant under section 3(f)(1) of 
Executive Order 12866. In accordance with the provisions of Executive 
Order 12866, this notice was reviewed by the Office of Management and 
Budget.
    The RFA requires agencies to analyze options for regulatory relief 
of small entities, if a rule has a significant impact on a substantial 
number of small entities. For purposes of the RFA, small entities 
include small businesses, nonprofit organizations, and small 
governmental jurisdictions. Most hospitals and most other providers and 
suppliers are small entities, either by nonprofit status or by having 
revenues of less than $7.5 million to $38.5 million in any 1 year (for 
details, see the Small Business Administration's Web site at http://www.sba.gov/sites/default/files/files/Size_Standards_Table.pdf).
    Individuals and states are not included in the definition of a 
small entity. As discussed above, this annual notice announces the 
Medicare Part A premiums for CY 2018. As a result, we are not preparing 
an analysis for the RFA because the Secretary has determined that this 
notice will not have a significant economic impact on a substantial 
number of small entities.
    In addition, section 1102(b) of the Social Security Act (Act) 
requires us to prepare a regulatory impact analysis if a rule may have 
a significant impact on the operations of a substantial number of small 
rural hospitals. This analysis must conform to the provisions of

[[Page 55367]]

section 604 of the RFA. For purposes of section 1102(b) of the Act, we 
define a small rural hospital as a hospital that is located outside of 
a metropolitan statistical area and has fewer than 100 beds. As 
discussed above, we are not preparing an analysis for section 1102(b) 
of the Act, because the Secretary has determined that this notice will 
not have a significant impact on the operations of a substantial number 
of small rural hospitals.
    Section 202 of the Unfunded Mandates Reform Act of 1995 also 
requires that agencies assess anticipated costs and benefits before 
issuing any rule whose mandates require spending in any 1 year of $100 
million in 1995 dollars, updated annually for inflation. In 2017, that 
threshold is approximately $148 million. This notice does not impose 
mandates that will have a consequential effect of $148 million or more 
on state, local, or tribal governments or on the private sector.
    Executive Order 13771, titled ``Reducing Regulation and Controlling 
Regulatory Costs,'' was issued on January 30, 2017 (82 FR 9339, 
February 3, 2017). It has been determined that this notice is a 
transfer notice that does not impose more than de minimis costs and 
thus is not a regulatory action for the purposes of E.O. 13771.
    Executive Order 13132 establishes certain requirements that an 
agency must meet when it promulgates a proposed rule (and subsequent 
final rule) that imposes substantial direct requirement costs on state 
and local governments, preempts state law, or otherwise has Federalism 
implications. This notice will not have a substantial direct effect on 
state or local governments, preempt state law, or otherwise have 
Federalism implications.
    Although this notice merely announces Medicare's Part A premiums 
for CY 2018 and does not constitute a substantive rule, we nevertheless 
prepared this Impact Statement in the interest of ensuring that the 
impacts of this notice are fully understood.

    Dated: October 27, 2017.
Seema Verma,
Administrator, Centers for Medicare & Medicaid Services.

    Dated: November 1, 2017.
Eric D. Hargan,
Acting Secretary, Department of Health and Human Services.
[FR Doc. 2017-24912 Filed 11-17-17; 4:15 pm]
 BILLING CODE 4120-01-P



                                                                               Federal Register / Vol. 82, No. 223 / Tuesday, November 21, 2017 / Notices                                           55365

                                                      1. 1831 Bancorp, MHC and 1831                         Railroad Retirement Act and do not                    person who had at least 30 quarters of
                                                    Bancorp, Inc., both of Dedham,                          otherwise meet the requirements for                   coverage;
                                                    Massachusetts; to acquire an indirect 20                entitlement to Medicare Part A. These                    • Had been married to a person for at
                                                    percent ownership interest in Plimoth                   ‘‘uninsured aged’’ individuals are                    least 1 year at the time of the person’s
                                                    Trust Company LLC, Plymouth,                            uninsured under the OASDI program or                  death if, at the time of death, the person
                                                    Massachusetts, and thereby engage in                    the Railroad Retirement Act, because                  had at least 30 quarters of coverage; or
                                                    trust company activities, financial and                 they do not have 40 quarters of coverage                 • Is divorced from a person and had
                                                    investment advisory activities and                      under Title II of the Act (or are/were not            been married to the person for at least
                                                    employee benefits consulting services                   married to someone who did). (Persons                 10 years at the time of the divorce if, at
                                                    pursuant to sections 225.28(b)(5), (6)                  insured under the OASDI program or                    the time of the divorce, the person had
                                                    and (9)(ii).                                            the Railroad Retirement Act and certain               at least 30 quarters of coverage.
                                                                                                            others do not have to pay premiums for                   Section 1818(d)(4)(A) of the Act
                                                      Board of Governors of the Federal Reserve
                                                    System, November 15, 2017.                              Medicare Part A.)                                     specifies that the premium that these
                                                                                                               Section 1818A of the Act provides for              individuals will pay for CY 2018 will be
                                                    Ann E. Misback,
                                                                                                            voluntary enrollment in Medicare Part                 equal to the premium for uninsured
                                                    Secretary of the Board.                                 A, subject to payment of a monthly                    aged enrollees reduced by 45 percent.
                                                    [FR Doc. 2017–25106 Filed 11–20–17; 8:45 am]            premium for certain disabled
                                                    BILLING CODE 6210–01–P                                  individuals who have exhausted other                  II. Monthly Premium Amount for CY
                                                                                                            entitlement. These are individuals who                2018
                                                                                                            were entitled to coverage due to a                       The monthly premium for the
                                                    DEPARTMENT OF HEALTH AND                                disabling impairment under section                    uninsured aged and certain disabled
                                                    HUMAN SERVICES                                          226(b) of the Act, but who are no longer              individuals who have exhausted other
                                                                                                            entitled to disability benefits and free              entitlement for the 12 months beginning
                                                    Centers for Medicare & Medicaid                         Medicare Part A coverage because they                 January 1, 2018, is $422.
                                                    Services                                                have gone back to work and their                         The monthly premium for the
                                                    [CMS–8066–N]                                            earnings exceed the statutorily defined               individuals eligible under section
                                                                                                            ‘‘substantial gainful activity’’ amount               1818(d)(4)(B) of the Act, and therefore,
                                                    RIN 0938–AT06                                           (section 223(d)(4) of the Act).                       subject to the 45 percent reduction in
                                                                                                               Section 1818A(d)(2) of the Act                     the monthly premium, is $232.
                                                    Medicare Program; CY 2018 Part A                        specifies that the provisions relating to
                                                    Premiums for the Uninsured Aged and                     premiums under section 1818(d)                        III. Monthly Premium Rate Calculation
                                                    for Certain Disabled Individuals Who                    through section 1818(f) of the Act for                   As discussed in section I of this
                                                    Have Exhausted Other Entitlement                        the aged will also apply to certain                   notice, the monthly Medicare Part A
                                                    AGENCY: Centers for Medicare &                          disabled individuals as described above.              premium is equal to the estimated
                                                    Medicaid Services (CMS), HHS.                              Section 1818(d)(1) of the Act requires             monthly actuarial rate for CY 2018
                                                                                                            us to estimate, on an average per capita              rounded to the nearest multiple of $1
                                                    ACTION: Notice.
                                                                                                            basis, the amount to be paid from the                 and equals one-twelfth of the average
                                                    SUMMARY:   This annual notice announces                 Federal Hospital Insurance Trust Fund                 per capita amount, which is determined
                                                    Medicare’s Hospital Insurance (Part A)                  for services incurred in the upcoming                 by projecting the number of Medicare
                                                    premium for uninsured enrollees in                      calendar year (CY) (including the                     Part A enrollees aged 65 years and over
                                                    calendar year (CY) 2018. This premium                   associated administrative costs) on                   as well as the benefits and
                                                    is paid by enrollees age 65 and over who                behalf of individuals aged 65 and over                administrative costs that will be
                                                    are not otherwise eligible for benefits                 who will be entitled to benefits under                incurred on their behalf.
                                                    under Medicare Part A (hereafter known                  Medicare Part A. We must then                            The steps involved in projecting these
                                                    as the ‘‘uninsured aged’’) and by certain               determine the monthly actuarial rate for              future costs to the Federal Hospital
                                                    disabled individuals who have                           the following year (the per capita                    Insurance Trust Fund are:
                                                    exhausted other entitlement. The                        amount estimated above divided by 12)                    • Establishing the present cost of
                                                    monthly Part A premium for the 12                       and publish the dollar amount for the                 services furnished to beneficiaries, by
                                                    months beginning January 1, 2018 for                    monthly premium in the succeeding CY.                 type of service, to serve as a projection
                                                    these individuals will be $422. The                     If the premium is not a multiple of $1,               base;
                                                    premium for certain other individuals as                the premium is rounded to the nearest                    • Projecting increases in payment
                                                    described in this notice will be $232.                  multiple of $1 (or, if it is a multiple of            amounts for each of the service types;
                                                                                                            50 cents but not of $1, it is rounded to              and
                                                    DATES: Effective Date: This notice is
                                                                                                            the next highest $1).                                    • Projecting increases in
                                                    effective on January 1, 2018.                                                                                 administrative costs.
                                                                                                               Section 13508 of the Omnibus Budget
                                                    FOR FURTHER INFORMATION CONTACT:                        Reconciliation Act of 1993 (Pub. L. 103–                 We base our projections for CY 2018
                                                    Clare McFarland, (410) 786 6390.                        66) amended section 1818(d) of the Act                on—(1) current historical data; and (2)
                                                    SUPPLEMENTARY INFORMATION:                              to provide for a reduction in the                     projection assumptions derived from
                                                                                                            premium amount for certain voluntary                  current law and the Mid-Session Review
                                                    I. Background                                                                                                 of the President’s Fiscal Year 2018
                                                                                                            enrollees (section 1818 and section
asabaliauskas on DSKBBXCHB2PROD with NOTICES




                                                      Section 1818 of the Social Security                   1818A of the Act). The reduction                      Budget.
                                                    Act (the Act) provides for voluntary                    applies to an individual who is eligible                 We estimate that in CY 2018,
                                                    enrollment in the Medicare Hospital                     to buy into the Medicare Part A program               50,295,843 people aged 65 years and
                                                    Insurance Program (Medicare Part A),                    and who, as of the last day of the                    over will be entitled to (enrolled in)
                                                    subject to payment of a monthly                         previous month:                                       benefits (without premium payment)
                                                    premium, of certain persons aged 65                        • Had at least 30 quarters of coverage             and that they will incur about $254.518
                                                    and older who are uninsured under the                   under Title II of the Act;                            billion in benefits and related
                                                    Old-Age, Survivors, and Disability                         • Was married, and had been married                administrative costs. Thus, the
                                                    Insurance (OASDI) program or the                        for the previous 1 year period, to a                  estimated monthly average per capita


                                               VerDate Sep<11>2014   18:56 Nov 20, 2017   Jkt 244001   PO 00000   Frm 00022   Fmt 4703   Sfmt 4703   E:\FR\FM\21NON1.SGM   21NON1


                                                    55366                      Federal Register / Vol. 82, No. 223 / Tuesday, November 21, 2017 / Notices

                                                    amount is $421.70 and the monthly                       interest. We believe that notice and                  equity). Section 3(f) of Executive Order
                                                    premium is $422. Subsequently, the full                 comment rulemaking for this                           12866 defines a ‘‘significant regulatory
                                                    monthly premium reduced by 45                           notification of Medicare Part A                       action’’ as an action that is likely to
                                                    percent is $232.                                        premiums for CY 2018 is unnecessary                   result in a rule: (1) Having an annual
                                                                                                            because of the lack of CMS discretion in              effect on the economy of $100 million
                                                    IV. Costs to Beneficiaries
                                                                                                            the statutory formula that is used to                 or more in any 1 year, or adversely and
                                                      The CY 2018 premium of $422 is                        calculate the premium and the solely                  materially affecting a sector of the
                                                    approximately 2 percent higher than the                 ministerial function that this notice                 economy, productivity, competition,
                                                    CY 2017 premium of $413. We estimate                    serves. Therefore, we find good cause to              jobs, the environment, public health or
                                                    that approximately 668,000 enrollees                    waive notice and comment procedures,                  safety, or state, local or tribal
                                                    will voluntarily enroll in Medicare Part                if such procedures are required at all.               governments or communities (also
                                                    A, by paying the full premium. We                                                                             referred to as ‘‘economically
                                                    estimate that over 90 percent of these                  VI. Collection of Information                         significant’’); (2) creating a serious
                                                    individuals will have their Part A                      Requirements                                          inconsistency or otherwise interfering
                                                    premium paid for by states, since they                    This document does not impose                       with an action taken or planned by
                                                    are enrolled in the Qualified Medicare                  information collection requirements,                  another agency; (3) materially altering
                                                    Beneficiary Program (a Medicaid                         that is, reporting, recordkeeping or                  the budgetary impacts of entitlement
                                                    program which helps certain low-                        third-party disclosure requirements.                  grants, user fees, or loan programs or the
                                                    income individuals with Medicare                        Consequently, there is no need for                    rights and obligations of recipients
                                                    premium and cost-sharing liability).                    review by the Office of Management and                thereof; or (4) raising novel legal or
                                                    Furthermore, the CY 2018 reduced                        Budget under the authority of the                     policy issues arising out of legal
                                                    premium of $232 is approximately 2                      Paperwork Reduction Act of 1995 (44                   mandates, the President’s priorities, or
                                                    percent higher than the CY 2017                         U.S.C. 3501 et seq.).                                 the principles set forth in the Executive
                                                    premium of $227. We estimate an                                                                               Order. As stated in section IV of this
                                                    additional 71,000 enrollees will pay the                VII. Regulatory Impact Statement                      notice, we estimate that the overall
                                                    reduced premium. Therefore, we                          A. Statement of Need                                  effect of the changes in the Part A
                                                    estimate that the total aggregate cost to                                                                     premium will be a cost to voluntary
                                                    enrollees paying these premiums in CY                      Section 1818(d) of the Act requires                enrollees (section 1818 and section
                                                    2018, compared to the amount that they                  the Secretary of the Department of                    1818A of the Act) of about $76 million.
                                                    paid in CY 2017, will be about $76                      Health and Human Services (the                        As a result, this notice is non-
                                                    million.                                                Secretary) during September of each                   economically significant under section
                                                                                                            year to determine and publish the                     3(f)(1) of Executive Order 12866. In
                                                    V. Waiver of Proposed Notice and                        amount to be paid, on an average per
                                                    Comment Period                                                                                                accordance with the provisions of
                                                                                                            capita basis, from the Federal Hospital               Executive Order 12866, this notice was
                                                       We ordinarily publish a notice of                    Insurance Trust Fund for services                     reviewed by the Office of Management
                                                    proposed rulemaking in the Federal                      incurred in the impending CY                          and Budget.
                                                    Register and invite public comment                      (including the associated administrative                 The RFA requires agencies to analyze
                                                    prior to a rule taking effect in                        costs) on behalf of individuals aged 65               options for regulatory relief of small
                                                    accordance with section 553(b) of the                   and over who will be entitled to benefits             entities, if a rule has a significant impact
                                                    Administrative Procedure Act (APA)                      under Medicare Part A.                                on a substantial number of small
                                                    and section 1871 of the Act. However,                                                                         entities. For purposes of the RFA, small
                                                                                                            B. Overall Impact
                                                    we believe that the policies being                                                                            entities include small businesses,
                                                    publicized in this document do not                         We have examined the impacts of this               nonprofit organizations, and small
                                                    constitute agency rulemaking. Rather,                   notice as required by Executive Order                 governmental jurisdictions. Most
                                                    the statute requires that the agency                    12866 on Regulatory Planning and                      hospitals and most other providers and
                                                    determine the applicable premium                        Review (September 30, 1993), Executive                suppliers are small entities, either by
                                                    amount for each calendar year in                        Order 13563 on Improving Regulation                   nonprofit status or by having revenues
                                                    accordance with the statutory formula,                  and Regulatory Review (January 18,                    of less than $7.5 million to $38.5
                                                    and we are simply notifying the public                  2011), the Regulatory Flexibility Act                 million in any 1 year (for details, see the
                                                    of the changes to the Medicare Part A                   (RFA) (September 19, 1980, Pub. L. 96–                Small Business Administration’s Web
                                                    premiums for CY 2018. To the extent                     354), section 1102(b) of the Social                   site at http://www.sba.gov/sites/default/
                                                    any of the policies articulated in this                 Security Act, section 202 of the                      files/files/Size_Standards_Table.pdf).
                                                    document constitute interpretations of                  Unfunded Mandates Reform Act of 1995                     Individuals and states are not
                                                    the statute’s requirements or procedures                (March 22, 1995; Pub. L. 104–4),                      included in the definition of a small
                                                    that will be used to implement the                      Executive Order 13132 on Federalism                   entity. As discussed above, this annual
                                                    statute’s directive, they are interpretive              (August 4, 1999), the Congressional                   notice announces the Medicare Part A
                                                    rules, general statements of policy, and                Review Act (5 U.S.C. 804(2)) and                      premiums for CY 2018. As a result, we
                                                    rules of agency organization, procedure,                Executive Order 13771 on Reducing                     are not preparing an analysis for the
                                                    or practice, which are not subject to                   Regulation and Controlling Regulatory                 RFA because the Secretary has
                                                    notice and comment rulemaking under                     Costs (January 30, 2017).                             determined that this notice will not
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                                                    the APA.                                                   Executive Orders 12866 and 13563                   have a significant economic impact on
                                                       To the extent that notice and                        direct agencies to assess all costs and               a substantial number of small entities.
                                                    comment rulemaking would otherwise                      benefits of available regulatory                         In addition, section 1102(b) of the
                                                    apply, we find good cause to waive this                 alternatives and, if regulation is                    Social Security Act (Act) requires us to
                                                    requirement. Under the APA, we may                      necessary, to select regulatory                       prepare a regulatory impact analysis if
                                                    waive notice and public procedure if we                 approaches that maximize net benefits                 a rule may have a significant impact on
                                                    find good cause that prior notice and                   (including potential economic,                        the operations of a substantial number
                                                    comment are impracticable,                              environmental, public health and safety               of small rural hospitals. This analysis
                                                    unnecessary, or contrary to the public                  effects, distributive impacts, and                    must conform to the provisions of


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                                                                               Federal Register / Vol. 82, No. 223 / Tuesday, November 21, 2017 / Notices                                           55367

                                                    section 604 of the RFA. For purposes of                 DEPARTMENT OF HEALTH AND                              II. Computing the Inpatient Hospital
                                                    section 1102(b) of the Act, we define a                 HUMAN SERVICES                                        Deductible for CY 2018
                                                    small rural hospital as a hospital that is                                                                       Section 1813(b) of the Act prescribes
                                                    located outside of a metropolitan                       Centers for Medicare & Medicaid                       the method for computing the amount of
                                                    statistical area and has fewer than 100                 Services                                              the inpatient hospital deductible. The
                                                    beds. As discussed above, we are not                                                                          inpatient hospital deductible is an
                                                    preparing an analysis for section 1102(b)               [CMS–8065–N]                                          amount equal to the inpatient hospital
                                                    of the Act, because the Secretary has                                                                         deductible for the preceding CY,
                                                    determined that this notice will not                    RIN 0938–AT05                                         adjusted by our best estimate of the
                                                    have a significant impact on the                                                                              payment-weighted average of the
                                                    operations of a substantial number of                   Medicare Program; CY 2018 Inpatient                   applicable percentage increases (as
                                                    small rural hospitals.                                  Hospital Deductible and Hospital and                  defined in section 1886(b)(3)(B) of the
                                                                                                            Extended Care Services Coinsurance                    Act) used for updating the payment
                                                       Section 202 of the Unfunded                          Amounts                                               rates to hospitals for discharges in the
                                                    Mandates Reform Act of 1995 also
                                                                                                                                                                  fiscal year (FY) that begins on October
                                                    requires that agencies assess anticipated               AGENCY: Centers for Medicare &                        1 of the same preceding CY, and
                                                    costs and benefits before issuing any                   Medicaid Services (CMS), HHS.                         adjusted to reflect changes in real case-
                                                    rule whose mandates require spending                                                                          mix. The adjustment to reflect real case-
                                                    in any 1 year of $100 million in 1995                   ACTION:   Notice.
                                                                                                                                                                  mix is determined on the basis of the
                                                    dollars, updated annually for inflation.                                                                      most recent case-mix data available. The
                                                                                                            SUMMARY:   This notice announces the
                                                    In 2017, that threshold is approximately                                                                      amount determined under this formula
                                                                                                            inpatient hospital deductible and the
                                                    $148 million. This notice does not                                                                            is rounded to the nearest multiple of $4
                                                                                                            hospital and extended care services
                                                    impose mandates that will have a                                                                              (or, if midway between two multiples of
                                                                                                            coinsurance amounts for services
                                                    consequential effect of $148 million or                 furnished in calendar year (CY) 2018                  $4, to the next higher multiple of $4).
                                                    more on state, local, or tribal                         under Medicare’s Hospital Insurance                      Under section 1886(b)(3)(B)(i)(XX) of
                                                    governments or on the private sector.                   Program (Medicare Part A). The                        the Act, the percentage increase used to
                                                       Executive Order 13771, titled                        Medicare statute specifies the formulae               update the payment rates for FY 2018
                                                    ‘‘Reducing Regulation and Controlling                   used to determine these amounts. For                  for hospitals paid under the inpatient
                                                    Regulatory Costs,’’ was issued on                       CY 2018, the inpatient hospital                       prospective payment system is the
                                                    January 30, 2017 (82 FR 9339, February                  deductible will be $1,340. The daily                  market basket percentage increase,
                                                                                                            coinsurance amounts for CY 2018 will                  otherwise known as the market basket
                                                    3, 2017). It has been determined that
                                                                                                            be: $335 for the 61st through 90th day                update, reduced by 0.75 percentage
                                                    this notice is a transfer notice that does
                                                                                                            of hospitalization in a benefit period;               points (see section 1886(b)(3)(B)(xii)(V)
                                                    not impose more than de minimis costs                                                                         of the Act), and an adjustment based on
                                                    and thus is not a regulatory action for                 $670 for lifetime reserve days; and
                                                                                                            $167.50 for the 21st through 100th day                changes in the economy-wide
                                                    the purposes of E.O. 13771.                                                                                   productivity (the multifactor
                                                                                                            of extended care services in a skilled
                                                       Executive Order 13132 establishes                    nursing facility in a benefit period.                 productivity (MFP) adjustment) (see
                                                    certain requirements that an agency                                                                           section 1886(b)(3)(B)(xi)(II) of the Act).
                                                    must meet when it promulgates a                         DATES:  Effective Date: This notice is                Under section 1886(b)(3)(B)(viii) of the
                                                    proposed rule (and subsequent final                     effective on January 1, 2018.                         Act, for FY 2018, the applicable
                                                    rule) that imposes substantial direct                   FOR FURTHER INFORMATION CONTACT:                      percentage increase for hospitals that do
                                                    requirement costs on state and local                    Clare McFarland, (410) 786–6390 for                   not submit quality data as specified by
                                                    governments, preempts state law, or                     general information. Gregory J. Savord,               the Secretary is reduced by one quarter
                                                    otherwise has Federalism implications.                  (410) 786–1521 for case-mix analysis.                 of the market basket update. We are
                                                    This notice will not have a substantial                                                                       estimating that after accounting for
                                                                                                            SUPPLEMENTARY INFORMATION:                            those hospitals receiving the lower
                                                    direct effect on state or local
                                                    governments, preempt state law, or                      I. Background                                         market basket update in the payment-
                                                    otherwise have Federalism implications.                                                                       weighted average update, the calculated
                                                                                                               Section 1813 of the Social Security                deductible will not be affected, since the
                                                       Although this notice merely                          Act (the Act) provides for an inpatient               majority of hospitals submit quality data
                                                    announces Medicare’s Part A premiums                    hospital deductible to be subtracted                  and receive the full market basket
                                                    for CY 2018 and does not constitute a                   from the amount payable by Medicare                   update. Section 1886(b)(3)(B)(ix) of the
                                                    substantive rule, we nevertheless                       for inpatient hospital services furnished             Act requires that any hospital that is not
                                                    prepared this Impact Statement in the                   to a beneficiary. It also provides for                a meaningful electronic health record
                                                    interest of ensuring that the impacts of                certain coinsurance amounts to be                     (EHR) user (as defined in section
                                                    this notice are fully understood.                       subtracted from the amounts payable by                1886(n)(3) of the Act) will have three-
                                                      Dated: October 27, 2017.                              Medicare for inpatient hospital and                   quarters of the market basket update
                                                                                                            extended care services. Section                       reduced by 100 percent for FY 2017 and
                                                    Seema Verma,
                                                                                                            1813(b)(2) of the Act requires the                    each subsequent fiscal year. We are
                                                    Administrator, Centers for Medicare &
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                                                                                                            Secretary of the Department of Health                 estimating that after accounting for
                                                    Medicaid Services.                                      and Human Services (the Secretary) to                 these hospitals receiving the lower
                                                      Dated: November 1, 2017.                              determine and publish each year the                   market basket update, the calculated
                                                    Eric D. Hargan,                                         amount of the inpatient hospital                      deductible will not be affected, since the
                                                    Acting Secretary, Department of Health and
                                                                                                            deductible and the hospital and                       majority of hospitals are meaningful
                                                    Human Services.                                         extended care services coinsurance                    EHR users and are expected to receive
                                                                                                            amounts applicable for services                       the full market basket update.
                                                    [FR Doc. 2017–24912 Filed 11–17–17; 4:15 pm]
                                                                                                            furnished in the following calendar year                 Under section 1886 of the Act, the
                                                    BILLING CODE 4120–01–P
                                                                                                            (CY).                                                 percentage increase used to update the


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Document Created: 2017-11-21 00:43:02
Document Modified: 2017-11-21 00:43:02
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
DatesEffective Date: This notice is effective on January 1, 2018.
ContactClare McFarland, (410) 786 6390.
FR Citation82 FR 55365 
RIN Number0938-AT06

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