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Medicare Readmissions Reduction (MRR) Coverage for Hospitals


CMS recently released its list of hospitals facing withheld reimbursement under the Hospital Readmissions Reduction Program (HRRP) for fiscal year 2018. Nearly 2,600 hospitals will be subject to withheld reimbursements totaling $564 million. Although Medicare readmission rates have fallen since 2007, CMS continues to withhold reimbursements to hospitals with higher-than-average readmission rates. For many hospitals and health care systems, these withheld reimbursements amount to substantial lost revenue despite efforts made to improve patient outcomes. 

Marsh and Ironshore have teamed together in developing Medicare Readmissions Reduction (MRR) coverage. Designed to mitigate the financial uncertainty to hospitals subject to these withholdings, MRR provides limits of up to a 3% reduction in annual total inpatient Medicare revenue. 

For more information on MRR, download our Fact Sheet.