Section 414.1550 - Basis of payment(a)General rule. For home infusion therapy services furnished on or after January 1, 2021, Medicare payment is made on the basis of 80 percent of the lesser of the following: (1) The actual charge for the item or service.(2) The fee schedule amount for the item or service, as determined in accordance with the provisions of this section.(b)Unit of single payment. A unit of single payment is made for items and services furnished by a qualified home infusion therapy supplier per payment category for each infusion drug administration calendar day, as defined at § 486.505 of this chapter.(c)Initial establishment of the payment amounts. In calculating the initial single payment amounts for CY 2021, CMS determined such amounts using the equivalent to 5 hours of infusion services in a physician's office as determined by codes and units of such codes under the annual fee schedule issued under section 1848 of the Act as follows:(1)Category 1.(i) Includes certain intravenous infusion drugs for therapy, prophylaxis, or diagnosis, including antifungals and antivirals; inotropic and pulmonary hypertension drugs; pain management drugs; chelation drugs; and other intravenous drugs as added to the durable medicare equipment local coverage determination (DME LCD) for external infusion pumps.(ii) Payment equals 1 unit of 96365 plus 4 units of 96366.(2)Category 2.(i) Includes certain subcutaneous infusion drugs for therapy or prophylaxis, including certain subcutaneous immunotherapy infusions.(ii) Payment equals 1 unit of 96369 plus 4 units of 96370.(3)Category 3.(i) Includes intravenous chemotherapy infusions, including certain chemotherapy drugs and biologicals.(ii) Payment equals 1 unit of 96413 plus 4 units of 96415.(4)Initial visit.(i) For each of the three categories listed in paragraphs (c)(1) through (3) of this section, the payment amounts are set higher for the first visit by the qualified home infusion therapy supplier to initiate the furnishing of home infusion therapy services in the patient's home and lower for subsequent visits in the patient's home. The difference in payment amounts is a percentage based on the relative payment for a new patient rate over an existing patient rate using the annual physician fee schedule evaluation and management payment amounts for a given year and calculated in a budget neutral manner.(ii) The first visit payment amount is subject to the following requirements if a patient has previously received home infusion therapy services:(A) The previous home infusion therapy services claim must include a patient status code to indicate a discharge.(B) If a patient has a previous claim for HIT services, the first visit home infusion therapy services claim subsequent to the previous claim must show a gap of more than 60 days between the last home infusion therapy services claim and must indicate a discharge in the previous period before a HIT supplier may submit a home infusion therapy services claim for the first visit payment amount.(d)Required payment adjustments. The single payment amount represents payment in full for all costs associated with the furnishing of home infusion therapy services and is subject to the following adjustments:(1) An adjustment for a geographic wage index and other costs that may vary by region, using an appropriate wage index based on the site of service of the beneficiary.(2) Beginning in 2022, an annual increase in the single payment amounts from the prior year by the percentage increase in the Consumer Price Index (CPI) for all urban consumers (United States city average) for the 12-month period ending with June of the preceding year.(3)(i) An annual reduction in the percentage increase described in paragraph (d)(2) of this section by the productivity adjustment described in section 1886(b)(3)(B)(xi)(II) of the Act.(ii) The application of the paragraph (c)(3)(i) of this section may result in the both of the following: (A) A percentage being less than zero for a year.(B) Payment being less than the payment rates for the preceding year.(e)Medical review. All payments under this system may be subject to a medical review adjustment reflecting the following:(1) Beneficiary eligibility.(2) Plan of care requirements.(3) Medical necessity determinations.