CMS said last week that DMEPOS payments should be increased by 2.4% on Jan. 1, 2012, to reflect an annual update in payment rates. DMEPOS items on the fee schedule are subject to an annual update tied to the Consumer Price Index for Urban Consumers (CPI-U), offset by a productivity adjustment. For 2012, the CPI-U is a 3.6% increase, but the productivity adjustment for next year reduces that by 1.2%. The increase won’t apply to competitively bid items in Round 1 areas. Congress could also reduce or eliminate the payment update.