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Annual Inflation Updates to the Annual Cap on Patient Engagement Tools and Supports Under 42 CFR § 1001.952(hh)

The safe harbor for arrangements for patient engagement and support at 42 CFR § 1001.952(hh) protects remuneration that squarely meets certain conditions, including that the aggregate retail value of patient engagement tools and supports furnished to a patient by a value-based enterprise participant (as defined in regulation) on an annual basis does not exceed a specific dollar value. As of January 19, 2021, the effective date of the safe harbor, the initial monetary cap was $500.

Pursuant to the safe harbor, this monetary cap is adjusted each calendar year to the nearest whole dollar by the increase in the Consumer Price Index for All Urban Consumers (CPI-U) for the 12-month period ending the preceding September 30. The Office of Inspector General will publish guidance after September 30 of each year reflecting the increase in the CPI-U for the 12-month period ending September 30 and the new monetary cap applicable for the following calendar year.

On October 13, 2021, the Bureau of Labor Statistics announced that the CPI-U increased by 5.4 percent during the 12-month period ending September 30, 2021. Accordingly, for the calendar year beginning January 1, 2022, the annual monetary cap for the safe harbor as set forth in 42 CFR § 1001.952(hh)(5) is $527.

The following table displays the annual monetary cap effective for each calendar year:
Calendar Year Annual Monetary Cap Applicable to
42 CFR § 1001.952(hh)
Percentage Change in the CPI-U for the 12-Month Period Ending the Preceding September 30
2021 $500 N/A
2022 $527 5.4%