FY 2021 IPPS proposed rule: Take a closer look at important MS-DRG updates

May 26th, 2020

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Note:  The following article synopsis was NOT provided by HCPro. It was created by Find-A-Code/innoviHealth.

Article Overview

This article summarizes key proposals in the FY 2021 IPPS proposed rule related to MS-DRG classification changes. It is useful for hospital inpatient coders, CDI professionals, and reimbursement staff who need to track CMS rulemaking, DRG restructuring, and diagnosis/procedure grouping updates. The discussion covers proposed MS-DRG revisions, selected ICD-10-CM and ICD-10-PCS assignment changes, and related CMS rulemaking timelines.

Why This Topic Matters

CMS proposed inpatient payment and grouping changes can affect how hospital claims are classified and paid. Staying current with these proposed MS-DRG updates helps coding and revenue cycle teams understand likely operational impacts and prepare comments or internal review.

Article Sections

  1. Development guiding principles

    Discusses CMS listening-session themes and the broader review of severity-level methodology used in MS-DRG refinement. The section focuses on general rulemaking background and the ongoing evaluation process.

  2. Update to antimicrobials and antifungals

    Summarizes proposed CMS changes related to new technology add-on payment and related grouping considerations for antimicrobial and antifungal products. It also addresses proposed adjustments to subgroup structure within the MS-DRG system.

  3. Proposed MS-DRG updates

    Reviews the major proposed MS-DRG restructuring topics included in the rule, including inpatient procedure reassignment, new DRG creation, and selected diagnosis-grouping revisions. The section also notes related CMS proposals affecting kidney-related, cardiac, appendectomy, transplant, and orthopedic grouping logic.

What You Will Learn

  • Which broad categories of MS-DRG changes CMS proposed for FY 2021
  • How CMS is approaching severity-level and resource-use review
  • What types of inpatient procedure and diagnosis grouping updates are being considered
  • Which general service areas are affected by the proposed rule
  • How the proposed rule relates to CMS comment timing and final-rule effective-date timing

Who Should Read This

  • Hospital inpatient coders
  • Coding compliance professionals
  • CDI specialists
  • Revenue cycle teams
  • DRG analysts
  • Health information management professionals

Codes Discussed

  • MS-DRG: 521
  • MS-DRG: 522
  • MS-DRG: 014
  • MS-DRG: 037
  • MS-DRG: 038
  • MS-DRG: 039
  • MS-DRG: 034
  • MS-DRG: 035
  • MS-DRG: 036
  • MS-DRG: 023
  • MS-DRG: 021
  • MS-DRG: 133
  • MS-DRG: 134
  • MS-DRG: 131
  • MS-DRG: 132
  • MS-DRG: 250
  • MS-DRG: 251
  • MS-DRG: 273
  • MS-DRG: 274
  • MS-DRG: 222
  • MS-DRG: 223
  • MS-DRG: 224
  • MS-DRG: 225
  • MS-DRG: 226
  • MS-DRG: 227
  • MS-DRG: 341
  • MS-DRG: 342
  • MS-DRG: 343
  • MS-DRG: 338
  • MS-DRG: 339
  • MS-DRG: 340
  • MS-DRG: 673
  • MS-DRG: 674
  • MS-DRG: 675
  • ICD-10-PCS: 0RRC0JZ
  • ICD-10-PCS: 0RRD0JZ
  • ICD-10-CM: K35.-
  • ICD-10-CM: K35.20
  • ICD-10-CM: K35.32
  • ICD-10-CM: N18.5
  • ICD-10-CM: N18.6
  • ICD-10-CM: E09.22
  • ICD-10-CM: E10.22
  • ICD-10-CM: E11.22
  • ICD-10-CM: E13.22
  • ICD-10-CM: T86.11
  • ICD-10-CM: T86.12
  • ICD-10-CM: T86.13
  • ICD-10-CM: T86.19

Code Ranges Discussed

  • MS-DRG: MS-DRGs 129-134
  • ICD-10-CM: K35.-

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