What is the possible penalty size under HRRP?

What is the possible penalty size under HRRP?

• A. No penalty
• B. Up to 3% reduction in base Medicare payments
• C. Up to 10% increase
• D. Flat $500,000 penalty

Answer: (B)

HRRP penalties come as a reduction in a hospital’s base Medicare payments when 30-day readmission rates are higher than expected. The size of this penalty is not a separate fine, nor an increase, and it isn’t a fixed dollar amount. Instead, the reduction is capped, so hospitals can lose some Medicare payment, but the exact amount depends on how far their readmission performance deviates from expectations, up to that cap. This is why the correct choice describes the penalty as up to a capped reduction in base Medicare payments.

HRRP penalties come as a reduction in a hospital’s base Medicare payments when 30-day readmission rates are higher than expected. The size of this penalty is not a separate fine, nor an increase, and it isn’t a fixed dollar amount. Instead, the reduction is capped, so hospitals can lose some Medicare payment, but the exact amount depends on how far their readmission performance deviates from expectations, up to that cap. This is why the correct choice describes the penalty as up to a capped reduction in base Medicare payments.