Hospitals across the U.S. would see a 2.55% increase in Medicare payment rates in fiscal year 2002, according to a proposed rule issued by the Health Care Financing Administration (HCFA). 

The proposed increase, which would become effective October 1, 2001, will affect some 4800 acute care hospitals that are paid under the prospective payment system (PPS). The size of the proposed increase is based on a formula enacted into law.

HCFA has also announced that Medicare will expedite coverage of pneumatic compression pumps to make it easier for Medicare beneficiaries with lymphedema to take advantage of the technology. 

This new coverage policy eliminates language that made these compression pumps the treatment of "last resort" for beneficiaries suffering from lymphedema, an accumulation of lymphatic fluid causing abnormal swelling of the arms, legs, breast, neck, or head that often develops when lymph nodes are removed during surgery.