IPPS Transmittal R13812CP: FY 2027 MS-DRG Device Credit Updates — Groupers Due October 5
CMS Transmittal R13812CP (CR 14519) updates FY 2027 MS-DRGs subject to the Replaced Devices Offered Without Cost or With a Credit policy, effective October 5, 2026.
Action required by
October 5, 2026
Review the Action Required section below and ensure your team has completed all compliance steps before this date.
CMS issued Transmittal R13812CP on August 7, 2026, under Change Request (CR) 14519 and Publication 100-04, updating Medicare Severity Diagnosis Related Groups (MS-DRGs) subject to the Inpatient Prospective Payment System (IPPS) Replaced Devices Offered Without Cost or With a Credit policy for Fiscal Year (FY) 2027. This is an administrative transmittal — not a proposed rule — with an implementation date of October 5, 2026. The single most critical compliance implication is that any MS-DRG grouper, charge capture logic, or claims processing configuration that feeds device-credit-subject DRG assignment must be updated before the October 5 go-live date.
Regulatory Background
Sign in to read the full article
Create a free account to access the complete analysis, action recommendations, and related alert references.
Quick answers
Does the October 5, 2026 implementation date for CR 14519 differ from the standard FY 2027 start date, and does that create a gap period?
Yes. The standard federal fiscal year begins October 1, but Transmittal R13812CP specifies an implementation date of October 5, 2026. Discharges from October 1 through October 4, 2026 should be processed under whichever MS-DRG device-credit list was in effect immediately prior — confirm with your MAC how claims in that gap window will be adjudicated before submitting them.
Which claims processing manual chapter governs the Replaced Devices Offered Without Cost or With a Credit reporting requirements referenced in R13812CP?
Transmittal R13812CP cites Publication 100-04, the Medicare Claims Processing Manual, as the governing publication under CR 14519. The specific chapter and section applicable to device-credit condition code and value code reporting on 837I claims will be detailed in the full CR 14519 attachment available at the source URL.
Does Transmittal R13812CP apply to Critical Access Hospitals (CAHs) or only to IPPS-paid facilities?
The transmittal explicitly references the Inpatient Prospective Payment System (IPPS) and MS-DRG assignment. CAHs are reimbursed under cost-based methodology and do not group under MS-DRGs, so the device-credit MS-DRG list updated by CR 14519 applies to IPPS-paid acute care inpatient facilities, not CAHs. Confirm scope with your MAC if your organization operates both IPPS and CAH provider numbers.
Content summarized from publicly available federal publications including CMS, MAC contractors, and the Federal Register. CLV Intelligence is not affiliated with or endorsed by any government agency. This is not legal or medical advice.