Market Basket Research and Information

Note: All data and Web pages are accessible for download – see the links in the Downloads section below.

Market Basket Information

FAQ – Market Basket Definitions and General Information

  • This document provides responses to frequently asked questions regarding the CMS market baskets, including definitions, update calculations, and forecast release dates.

TFP Methodology

  • This document provides an overview of the methodology used to produce a forecast of private nonfarm business total factor productivity.

Methodology for Development of Market Baskets

Links to Federal Register for Current Market Baskets

  • The current market baskets for each of the Prospective Payment Systems (PPSs) were proposed and finalized in rulemaking.  In the Related Links section below, we provide the links to the PPS final rules published in the Federal Register for each of the following market baskets (with page references):
    • 2018-based Inpatient Prospective Payment System (IPPS) market basket effective for FY 2022 (page 45194) 
    • 2018-based Capital Input Price Index (CIPI) effective for FY 2022 (page 45208) 
    • 2018-based Skilled Nursing Facilities (SNF) market basket effective for FY 2023 (page 42444) 
    • 2016-based Home Health (HH) market basket effective for CY 2019 (page 56425)
    • 2016-based Inpatient Rehabilitation Facilities (IRF) market basket effective for FY 2020 (page 39072)
    • 2016-based Inpatient Psychiatric Facilities (IPF) market basket effective for FY 2020 (page 38426)
    • 2017-based Long-term Care Hospital (LTCH) market basket effective for FY 2021 (page 58909)
    • 2016-based Medicare Economic Index (MEI) effective for CY 2014 (page 74264)
    • 2016-based End-Stage Renal Disease (ESRD) bundled market basket effective for CY 2019 (page 56951)
    • 2017-based Federally Qualified Health Center (FQHC) market basket effective for CY 2021 (page 84699)

Illustrative Example of Market Basket Calculations (as described in IPPS FY 2010 Proposed Rule)

  • In an effort to provide greater transparency of how CMS market baskets are constructed, the zip file in the Downloads section below provides three illustrative documents as described in the CMS Proposed Rule:  "Medicare Program; Proposed Changes to the Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals and Fiscal Year 2010 Rates and to the Long-Term Care Hospital Prospective Payment System and Rate Year 2010 Rates."  These electronic files demonstrate:
    • How the detailed cost weights for the proposed 2006-based IPPS operating market basket are determined using the 2002 Benchmark Input-Output data
    • How vintage weights are calculated for the 2006-based Capital Input Price Index
    • How vintage weights are applied to raw price proxies to calculate a vintage-weighted price proxy for the 2006-based Capital Input Price Index

Market Basket Research

Alternative Index Weighting

  • This 2008 research paper provides a discussion of alternative weighting of the hospital market basket input price index

SNF update framework

  • This conceptual paper from 2000 explains the factors inherent in SNF payments and costs per day and how these factors could be incorporated into a SNF update framework.
    Page Last Modified:
    05/17/2022 04:02 PM