Timing of Penalties

Penalties on heart failure, heart attacks and pneumonia have been paid since October 2012, based on readmissions back to July 2008. Penalties on emphysema, chronic bronchitis (COPD), knee and hip replacements will be paid starting October 2014, based on readmissions back to July 2010.

Medicare calculates new penalties each fiscal year:

Penalties charged in any one year are based on readmissions in three years ending 15 months earlier.