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Provider Reimbursement Manual - Part 1

Section 905.6, Inflation Factor, provides for calendar year (CY) inflation factors to update previous years’ reasonable compensation ranges. The factor is from the cost category Professional fees in the CMS Prospective Payment System Hospital Input Price Index. The data
in the Input Price Index is taken from actual data for the most recent year from the Employment Cost Index for Professional and Technical Workers published by the Bureau of Labor Statistics. In this transmittal, the factor for CY 2006 has been added and the factor for CY 1996 has been deleted.

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Issued by: Centers for Medicare & Medicaid Services (CMS)

Issue Date: May 04, 2007

DISCLAIMER: The contents of this database lack the force and effect of law, except as authorized by law (including Medicare Advantage Rate Announcements and Advance Notices) or as specifically incorporated into a contract. The Department may not cite, use, or rely on any guidance that is not posted on the guidance repository, except to establish historical facts.