Medicare Claims Processing Manual (Pub. 100-04), Ch. 19 § 100.3
A/B MAC (A) - Inpatient Acute Care - Medicare Part A -
100.3 - A/B MAC (A) - Inpatient Acute Care - Medicare Part A -
Payment Policy
(Rev. 1040, Issued: 08-25-06, Effective: 09-11-06, Implementation: 09-11-06)
Medicare Part A provides payment to IHS providers for up to 90 days of covered
inpatient hospital services in a benefit period. These services are subject to Medicare
Part A inpatient deductible and coinsurance. Each beneficiary also has 60 lifetime
reserve days (LTR) of inpatient hospital services to draw upon after having used 90 days
of inpatient hospital services in a benefit period. Lifetime reserve days are subject to
Medicare Part A LTR coinsurance. Deductible and coinsurance amounts are applied by
Medicare, but are waived by the IHS.
See Pub. 100-02, Medicare Benefit Policy Manual for more information on Medicare Part
A deductible, coinsurance and benefit periods.
The IHS providers are paid for covered inpatient services under the IPPS based upon
diagnostic related groups (DRGs). The IPPS Pricer recognizes that IHS providers are
paid at a higher wage index than other acute care hospitals.