Proposed Rule2025-22543

Medicare Program; Alternative Payment Model Updates and the Increasing Organ Transplant Access (IOTA) Model

Primary source

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Published
December 11, 2025

Issuing agencies

Health and Human Services DepartmentCenters for Medicare & Medicaid Services

Abstract

This proposed rule would update and revise the Increasing Organ Transplant Access (IOTA) Model for Performance Year (PY) 2.

Full Text

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[Federal Register Volume 90, Number 236 (Thursday, December 11, 2025)]
[Proposed Rules]
[Pages 57598-57634]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-22543]



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Vol. 90

Thursday,

No. 236

December 11, 2025

Part IV





Department of Health and Human Services





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Centers for Medicare & Medicaid Services





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42 CFR Part 512





Medicare Program; Alternative Payment Model Updates and the Increasing 
Organ Transplant Access (IOTA) Model; Proposed Rule

Federal Register / Vol. 90 , No. 236 / Thursday, December 11, 2025 / 
Proposed Rules

[[Page 57598]]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

42 CFR Part 512

[CMS-5544-P]
RIN 0938-AV65


Medicare Program; Alternative Payment Model Updates and the 
Increasing Organ Transplant Access (IOTA) Model

AGENCY: Centers for Medicare & Medicaid Services (CMS), Department of 
Health and Human Services (HHS).

ACTION: Proposed rule.

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SUMMARY: This proposed rule would update and revise the Increasing 
Organ Transplant Access (IOTA) Model for Performance Year (PY) 2.

DATES: To be assured consideration, comments must be received at one of 
the addresses provided below, by February 9, 2026.

ADDRESSES: In commenting, please refer to file code CMS-5544-P.
    Comments, including mass comment submissions, must be submitted in 
one of the following three ways (please choose only one of the ways 
listed):
    1. Electronically. You may submit electronic comments on this 
regulation to <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow the ``Submit a 
comment'' instructions.
    2. By regular mail. You may mail written comments to the following 
address ONLY: Centers for Medicare & Medicaid Services, Department of 
Health and Human Services, Attention: CMS-5544-P, P.O. Box 8013, 
Baltimore, MD 21244-8013.
    Please allow sufficient time for mailed comments to be received 
before the close of the comment period.
    3. By express or overnight mail. You may send written comments to 
the following address ONLY: Centers for Medicare & Medicaid Services, 
Department of Health and Human Services, Attention: CMS-5544-P, Mail 
Stop C4-26-05, 7500 Security Boulevard, Baltimore, MD 21244-1850.
    For information on viewing public comments, see the beginning of 
the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: 
    <a href="/cdn-cgi/l/email-protection#397a7474704d4b58574a495558574d795a544a1751514a175e564f"><span class="__cf_email__" data-cfemail="c0838d8d89b4b2a1aeb3b0aca1aeb480a3adb3eea8a8b3eea7afb6">[email&#160;protected]</span></a>, for questions related to the Increasing 
Organ Transplant Access Model.
    Thomas Duvall, (410) 786-8887, for questions related to the 
Increasing Organ Transplant Access Model.
    Christina McCormick, (410) 786-4012, for questions related to the 
Increasing Organ Transplant Access Model.
    Lina Gebremariam, (410) 786-8893, for questions related to the 
Increasing Organ Transplant Access Model.

SUPPLEMENTARY INFORMATION: 
    Inspection of Public Comments: All comments received before the 
close of the comment period are available for viewing by the public, 
including any personally identifiable or confidential business 
information that is included in a comment. We post all comments 
received before the close of the comment period on the following 
website as soon as possible after they have been received: <a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow the search instructions on that website to 
view public comments. CMS will not post on <a href="http://Regulations.gov">Regulations.gov</a> public 
comments that make threats to individuals or institutions or suggest 
that the commenter will take actions to harm an individual. CMS 
continues to encourage individuals not to submit duplicative comments. 
We will post acceptable comments from multiple unique commenters even 
if the content is identical or nearly identical to other comments.
    Plain Language Summary: In accordance with 5 U.S.C. 553(b)(4), a 
plain language summary of this rule may be found at <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>.

I. Executive Summary and Background

A. Executive Summary

1. Purpose
    This proposed rule would make changes to the Increasing Organ 
Transplant Access (IOTA) Model for Performance Year (PY) 2, which will 
begin on July 1, 2026, and future PYs.
2. Summary of the Major Provisions
    The following is a summary of the major provisions in this proposed 
rule. A general summary of the changes in this proposed rule is 
presented in section II.B of the preamble of this proposed rule.
a. IOTA Participants
    In the 2024 Final Rule, CMS finalized that a kidney transplant 
hospital is eligible to be selected as an IOTA participant if it meets 
both of the following criteria: (1) The kidney transplant hospital 
annually performed 11 or more kidney transplants for patients aged 18 
years or older, regardless of payer, each of the baseline years; and 
(2) the kidney transplant hospital annually performed more than 50 
percent of its kidney transplants on patients 18 years of age or older 
each of the baseline years. However, per section 1835(d) of the Social 
Security Act (the Act) as codified in 42 CFR 411.6, Medicare does not 
pay for services furnished by a Federal provider of services or other 
Federal agency, nor does Medicare pay for services that are paid for 
directly or indirectly by a government entity, with only limited 
exceptions. Therefore, we are proposing to modify the eligible kidney 
transplant hospital criteria to exclude Department of Veteran's Affairs 
(VA) medical facilities and Military medical treatment facilities 
(MTFs) from the IOTA Model for PYs 2 through 6, as described in section 
II.B.1.b. of this proposed rule.
    In the 2024 Final Rule, CMS established a low volume threshold 
requiring kidney transplant hospitals to have performed 11 or more 
kidney transplants for patients aged 18 years or older annually in each 
of the 3 baseline years in order to be eligible for selection into the 
IOTA Model, designed to protect beneficiary confidentiality and align 
with minimum CMS data display standards while ensuring statistical 
significance. However, in response to some IOTA participants expressing 
concern about their ability to participate in the model and our 
experience in operating the model, we believe it is necessary to 
reevaluate the low volume threshold requiring a kidney transplant 
hospital to have performed at least 11 kidney transplants annually in 
each of the 3 baseline years in order to be eligible for selection into 
the IOTA Model. As such, as described in section II.B.1.b. of this 
proposed rule, we are proposing to raise the low volume threshold from 
a minimum of 11 kidney transplants performed annually during each of 
the baseline years to a minimum of 15 kidney transplants performed 
annually during each of the baseline years.
b. Performance Assessment
    In the 2024 Final Rule, we finalized a policy to assess IOTA 
participant performance each PY in the quality domain on post-
transplant outcomes using the composite graft survival rate. While the 
model performance period has begun, we indicated that for certain 
policies, such as the inclusion of a risk-adjustment methodology when 
calculating the composite graft survival rate to account for the 
complexities of donors and recipients, and their associated risks, we 
would go through rulemaking in the future to promulgate new or updated 
policies that would be finalized after the model start date. Therefore, 
as described in section II.B.2.b.(2).(a). of this proposed rule, we are 
proposing updates to the composite

[[Page 57599]]

graft survival rate metric that would include the following 
modifications:
    <bullet> Adding a risk-adjustment methodology that includes several 
transplant recipient and donor characteristics (for example, transplant 
recipient and donor age, diabetes status, sex, kidney function (eGFR/
creatinine).
    <bullet> Excluding multi-organ transplants from the composite graft 
survival rate exclusion and inclusion criteria, in recognition of their 
more complicated results for kidney transplant recipients.
    <bullet> Updating the allocation of points awarded for performance 
on the composite graft survival rate.
    A detailed description of each proposed policy change and the 
corresponding scoring criteria can be found in section II.B.2.b. of 
this proposed rule.
c. Payment
    As finalized in the 2024 Final Rule, each IOTA participant's final 
performance score will determine whether: (1) CMS will pay an upside 
risk payment to the IOTA participant; (2) the IOTA participant will 
fall into a neutral zone where no performance-based incentive payment 
will be paid to or owed by the IOTA participant; or (3) the IOTA 
participant will owe a downside risk payment to CMS. For a final 
performance score greater than 60, CMS will apply the formula for the 
upside risk payment, which will be equal to the IOTA participant's 
final performance score minus 60, then divided by 40, then multiplied 
by $15,000, then multiplied by the number of kidney transplants 
furnished by the IOTA participant to attributed patients with Medicare 
fee-for-service (FFS) as their primary or secondary payer during the 
PY. Final performance scores below 60 in PY 1 and final performance 
scores of 40 to 60 (inclusive) in PYs 2 through 6 will fall in the 
neutral zone where there will be no payment owed to the IOTA 
participant or CMS.
    Currently, IOTA Model regulations stipulate that IOTA participants 
must remit the downside risk payment to CMS in a single payment at 
least 60 days after the date on which the demand letter is issued. As 
described in section II.B.3.c.(2). of this proposed rule, CMS is 
proposing to modify the policy previously finalized in the 2024 Final 
Rule such that IOTA participants must remit the downside risk payment 
to CMS in a single payment within 60 days after the date on which the 
demand letter is issued. As proposed in section II.B.3.c.(2). of this 
proposed rule, if full payment is not received by CMS within 60 days 
after demand is made, the remaining amount owed will be considered a 
delinquent debt.
    Finally, in the 2024 Final Rule, CMS established an Extreme and 
Uncontrollable Circumstance (EUC) payment policy recognizing that 
events may occur outside the purview and control of the IOTA 
participant that may affect their performance in the model. Under the 
current provision in the IOTA Model, CMS applies determinations made by 
the Quality Payment Program (QPP) with respect to whether an EUC has 
occurred, and the areas impacted during the PY. As currently finalized, 
in the event of an extreme and uncontrollable circumstance, as 
determined by the QPP, CMS may reduce the downside risk payment, if 
applicable, prior to recoupment. CMS determines the amount of the 
reduction by multiplying the downside risk payment by both the 
percentage of total months during the PY affected by the EUC and the 
percentage of attributed patients who reside in an area affected by the 
EUC. As described in section II.B.3.c.(3). of this proposed rule, CMS 
recognizes that QPP policies may not be appropriate for the IOTA Model 
due to different payment calculation inputs and program goals. CMS also 
acknowledges the limited nature of the current EUC provision to account 
for broader impacts that an EUC might have on an IOTA participant's 
ability to perform in the model, which only potentially reduces 
downside payments without accounting for changes in model inputs or 
reporting periods that may affect an IOTA participant's performance 
score. Therefore, this proposed rule updates to the EUC provisions that 
would provide CMS sole discretionary authority to do the following:
    <bullet> Apply flexibilities to IOTA participants located in 
emergency areas during emergency periods as defined in section 1135(g) 
of the Act with Secretary-issued waivers and in counties, parishes, or 
tribal governments designated under major disaster declarations 
pursuant to the Stafford Act.
    <bullet> Extend payment and reporting accommodations to IOTA 
participants impacted by EUC.
    <bullet> Adjust the upside risk payment or downside risk payment 
amount for the IOTA participant if the IOTA participant is 
participating in the IOTA Model when such an emergency period has been 
declared.
d. Other Requirements
    In the 2024 Final Rule, CMS finalized several other model 
requirements for IOTA participants, including transparency 
requirements, public reporting requirements, and a health equity plan 
requirement which is optional for the IOTA Model performance period. In 
the 2024 Final Rule, CMS signaled that there were several policies that 
would be updated through future rulemaking. In addition, there were 
several policy considerations raised subsequent to the publication of 
the 2024 Proposed Rule, including through public comment, which CMS 
would like to incorporate into the IOTA Model, but were unable to add 
to the 2024 Final Rule. Therefore, this proposed rule proposes updates 
to other requirements in the IOTA Model.
a. Transparency
    In the 2024 Final Rule CMS finalized that IOTA participants must 
publicly post their patient selection waitlist criteria on a website by 
the end of PY 1. CMS also stated its intent to use future rulemaking to 
determine the cadence of updating this website and patient selection 
criteria. As such, this proposed rule proposes updates to this 
requirement that includes the following modifications:
    <bullet> For all subsequent PYs after PY1, the IOTA participant 
must review its publicly posted patient selection waitlist criteria and 
ensure that the information on its website is up to date by the end of 
each relevant PY.
    <bullet> IOTA participants performing living donor transplants must 
publicly post their living donor selection criteria for evaluating 
potential living donors for kidney transplant waitlist patients by the 
end of PY 2. IOTA participants must ensure the accuracy of this 
information by the end of each subsequent PY.
    Each of the proposed provisions is discussed in detail in section 
II.B.4.a.(1). of this proposed rule.
    CMS also finalized its intent in the 2024 Final Rule to identify 
each IOTA participant for each PY and to post performance across the 
achievement domain, efficiency domain, and quality domain for each IOTA 
participant on the IOTA Model website annually, as they become 
available. As proposed in section II.B.4.a.(2). of this proposed rule, 
we are proposing to publish IOTA participant waitlist selection 
criteria and the proposed living donor selection criteria, as described 
in section II.B.4.a.(1). of this proposed rule, on the IOTA Model 
website by the end of the second quarter of each subsequent PY.
    As discussed in the 2024 Final Rule, those active on a kidney 
transplant waitlist may receive organ offers at any time. However, 
there is currently no requirement for providers to discuss organ offers 
with their patients. A

[[Page 57600]]

provider may decline an organ offer for any number of reasons; however, 
declining without disclosing the rationale with the patient may miss an 
important opportunity for shared decision-making. As described in the 
2024 Final Rule, CMS proposed monthly transparency requirements for 
IOTA participants to inform IOTA waitlist patients who are Medicare 
beneficiaries about declined organ offers and the reasons for 
declination. However, following feedback from 2024 Proposed Rule public 
comments that this policy would impose a significant administrative 
burden on IOTA participants, CMS decided not to finalize this 
transparency requirement and instead committed to consider 
alternatives, such as alternative frequencies for sharing declined 
organ offers with Medicare beneficiaries, while remaining invested in 
evaluating alternative transparency opportunities for patients on the 
waiting list with the transplant community to fulfill this important 
need. In this proposed rule, we are proposing an alternative approach 
for the model, as described in section II.B.4.a.(3). of this proposed 
rule. As proposed in section II.B.4.a.(3). of this proposed rule, 
beginning in PY 3, IOTA participants must provide semi-annual (that is, 
at least once every 6 months) notifications to ``eligible IOTA waitlist 
beneficiaries,'' as defined in section II.B.4.a.(3). of this proposed 
rule, detailing the number and reasons for organ declinations made on 
their behalf, with eligible IOTA waitlist beneficiaries retaining the 
right to opt out of receiving these notifications.
    In the 2024 Final Rule, CMS finalized a requirement that IOTA 
participants must review organ offer acceptance criteria with their 
IOTA waitlist patients who are Medicare beneficiaries at least once 
every 6 months that the Medicare beneficiary is on their waitlist. IOTA 
participants have since requested that CMS provide clarification on 
what acceptance criteria information should be reviewed. Therefore, as 
described in section II.B.4.(a).(4). of this proposed rule, we aim to 
clarify that review of acceptance criteria pertains to individual 
patient transplant organ offer acceptance criteria and not organ offer 
filters or kidney transplant hospital level acceptance criteria. For 
purposes of the model, we are also proposing to define ``transplant 
organ offer acceptance criteria'' as individualized patient acceptance 
parameters that kidney waitlist patients, as defined at Sec.  512.402, 
may elect regarding the categories of organ offers they are prepared to 
accept for transplantation.
    Lastly, CMS is proposing the adoption of the following provisions 
for IOTA participants to notify its IOTA waitlist patients who are 
Medicare beneficiaries when their waitlist status has changed (that is, 
from active to inactive) only if it is not redundant with other HHS 
guidance: If finalized, the IOTA participant would be required to: (1) 
inform IOTA waitlist patients who are Medicare beneficiaries any time 
their status on its waitlist is changed that would impact their ability 
to receive an organ offer; (2) include the reason, and information 
about how IOTA waitlist patients who are Medicare beneficiaries could 
become active again; and, (3) notify the dialysis facility (as defined 
at 42 CFR 494.10) and managing clinician (as defined at 42 CFR 512.310) 
or nephrologist if applicable. IOTA participants would be required to 
notify these IOTA waitlist patients who are Medicare beneficiaries of 
status changes within 10 days when they become ineligible for organ 
offers (if not redundant with existing HHS guidance). This proposed 
provision is discussed in detail in section II.B.4.a.(5). of this 
proposed rule.
b. Health Equity Plans
    In the 2024 Final Rule, CMS finalized that an IOTA participant may 
voluntarily submit a health equity plan (HEP) to CMS. CMS finalized 
voluntary health equity plan submissions aiming to address reducing 
health disparities for attributed patients. However, in an effort to 
align with priorities of the Administration and address concerns of 
added burdens on IOTA participants in a mandatory model, we decided to 
remove the voluntary health equity plan submissions and are proposing 
to remove all health equity plan provisions and related definitions 
from the IOTA Model as described in section II.B.4.b. of this proposed 
rule. This proposed policy change would enable IOTA participants to 
focus limited resources on care redesign activities that would improve 
their model performance and the quality of care and experience for the 
attributed patient. While CMS is not currently proposing a replacement 
for these policies, CMS may consider incorporating elements that align 
with the current Administration's focus on Making America Healthy Again 
(MAHA) in future years through notice and comment rulemaking.
e. Beneficiary Protections
    CMS finalized in the 2024 Final Rule that IOTA participants must 
provide notice to each attributed patient of its participation in the 
IOTA Model. As described in section II.B.5. of this proposed rule, we 
are proposing updates to this provision that would include the 
following modifications:
    <bullet> Limit these notification requirements to Medicare 
beneficiaries only.
    <bullet> Allow IOTA participants to distribute this notification in 
a paper notification at the first in office or outpatient visit, or to 
distribute the notification in an electronic format in cases where the 
attributed patient has affirmatively opted out of receiving paper 
communications.
f. Monitoring
    In the 2024 Final Rule, we finalized a comprehensive list of 
monitoring activities to ensure compliance and promote the safety of 
attributed patients and the integrity of the IOTA Model. However, we 
inadvertently omitted monitoring of the review of acceptance criteria 
provision as described in Sec.  512.442. Therefore, in this proposed 
rule we are proposing to include that CMS may monitor the following 
transparency provisions as described in section II.B.6 of this proposed 
rule:
    <bullet> Informing eligible IOTA waitlist patients who are Medicare 
beneficiaries, as defined in section II.B.4.a.(3). of this proposed 
rule, of the number of times an organ is declined on the Medicare 
beneficiary's behalf in accordance with proposed Sec.  512.442(b);
    <bullet> Reviewing selection criteria with IOTA waitlist patients 
who are Medicare beneficiaries at least once every 6 months that the 
Medicare beneficiary is on their waitlist as specified in Sec.  
512.442(c); and
    <bullet> Notifying IOTA waitlist patients who are Medicare 
beneficiaries when their waitlist status has changed from active to 
inactive in accordance with proposed Sec.  512.442(d).
g. Remedial Action and Termination
    In the 2024 Final Rule, we finalized a comprehensive list of 
reasons for which CMS may immediately or with advance notice terminate 
an IOTA participant from the IOTA Model. As mentioned in section 
II.B.7. of this proposed rule, we inadvertently omitted the Department 
of Health and Human Services (HHS) and the Organ Procurement and 
Transplantation Network (OPTN) as sources of vital information 
regarding potential events by IOTA participants identified as 
presenting a risk to patient safety, public health, and related 
concerns that may lead CMS to terminate IOTA participants. Therefore, 
in this proposed rule we are proposing to include that CMS may 
terminate an IOTA participant from the IOTA Model if HHS or the

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OPTN has determined that an IOTA participant has violated the OPTN's 
policies, OPTN's Management and Membership policies, or the HHS's 
regulation (42 CFR 121) upon a review conducted pursuant to 42 CFR 
121.10, along with minor technical corrections to accommodate this 
proposal as described in section II.B.7 of this proposed rule.
h. Request for Information (RFI) on Topics Relevant to IOTA Model
    As part of the Medicare Program; Alternative Payment Model Updates 
and the Increasing Organ Transplant Access (IOTA) Model Proposed Rule 
(2024 Proposed Rule) published in the Federal Register in May 2024 (89 
FR 43518), we stated that our goal for the quality domain within the 
IOTA Model is to achieve acceptable post-transplant outcomes while 
incentivizing increased kidney transplant volume.\1\ We are seeking 
public input and comments on a future access to waitlist quality 
process measure to be specified, tested, and implemented for future 
years of the IOTA Model, titled ``Pre-transplantation Access Process 
Measure''.
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    \1\ We note that the definition and criteria for ``acceptable'' 
post-transplant outcomes has not been defined and, as stated in 
section II.B.2.b(2) of this proposed rule, we are seeking comment on 
how to define an acceptable level (for example, 1 standard deviation 
of the national risk-adjusted rate or some other way).
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    In the 2024 Final Rule, CMS finalized monitoring allocation out-of-
sequence (AOOS) kidneys as a monitoring activity. In response to the 
2024 Proposed Rule, we received numerous comments from the public 
worried about the impact of the IOTA Model on further promoting AOOS. 
Additionally, on August 30, 2024, HRSA provided a critical comment 
letter to the OPTN and OPTN contractor regarding a complaint that they 
received, in which HRSA emphasized the OPTN policies requiring each OPO 
to maintain a plan for equitable organ allocation among transplant 
patients consistent with OPTN obligations. While we did not make any 
changes in the 2024 Final Rule based on the comments received, AOOS 
remains an issue of concern for CMS and HRSA. As such, in this proposed 
rule, we would like to seek public comments on potential policies CMS 
could consider to address AOOS as part of the IOTA Model or through 
separate regulatory efforts.
3. Summary of Costs and Benefits
    The IOTA Model aims to incentivize transplant hospitals to overcome 
system-level barriers to kidney transplantation. The chronic shortfall 
in kidney transplants results in poorer outcomes for patients and 
increases the burden on Medicare in terms of payments for dialysis and 
dialysis-based enrollment in the program. In section V of this proposed 
rule, we set forth a detailed analysis of the impacts that the proposed 
changes would have on affected IOTA participants and beneficiaries. We 
estimate that as a result of the proposed changes to the IOTA Model, 
net Federal savings would increase by $21 million.

B. Model Overview and Background

    The Increasing Organ Transplant Access (IOTA) Model is a 6-year 
mandatory alternative payment model tested by the CMS Innovation Center 
under section 1115A of the Social Security Act (the Act) that began on 
July 1, 2025, and will end on June 30, 2031. The model appeared in the 
December 4, 2024 Federal Register (89 FR 96280) titled ``Medicare 
Program; Alternative Payment Model Updates and the Increasing Organ 
Transplant Access (IOTA) Model'' (hereinafter referred to as the 2024 
Final Rule), and this proposed rule would update IOTA Model provisions 
in response to improvement opportunities that arose during 
implementation and to better align the model with new administration 
priorities. The IOTA Model is aimed at kidney transplant hospitals with 
the goal of increasing the number of kidney transplants, improving 
quality, and improving patient experience during the transplant 
process.

II. Proposed Changes to the Increasing Organ Transplant Access (IOTA) 
Model

A. Background

1. Purpose
    The Increasing Organ Transplant Access (IOTA) Model is a 6-year 
mandatory alternative payment model tested by the CMS Innovation Center 
that began on July 1, 2025, and will end on June 30, 2031. The IOTA 
Model is testing whether performance-based incentives paid to or owed 
by participating kidney transplant hospitals can increase access to 
kidney transplants for kidney transplant waitlist patients, while 
preserving or enhancing quality of care and reducing Medicare 
expenditures. CMS has selected 103 kidney transplant hospitals to 
participate in the IOTA Model and will be measuring and assessing the 
participating kidney transplant hospitals' performance during each 
performance year (PY) across three performance domains: achievement, 
efficiency, and quality.
    The IOTA Model was established through notice and comment 
rulemaking, finalized in the Medicare Program; Alternative Payment 
Model Updates and the Increasing Organ Transplant Access (IOTA) Model 
Final Rule (2024 Final Rule), CMS-5535-F, published December 4, 2024. 
In the 2024 Final Rule, CMS signaled that there were several policies 
that could be addressed through future rulemaking, including: the 
addition of a risk-adjustment methodology in the calculation of the 
composite graft survival rate, the addition of transplants furnished to 
Medicare Advantage beneficiaries to the definition of Medicare kidney 
transplants, and the addition of a monthly transparency requirement for 
IOTA participants to inform IOTA waitlist patients who are Medicare 
beneficiaries about declined organ offers and the reasons for 
declination. In addition, there were a number of policy considerations 
raised subsequent to the publication of the Medicare Program; 
Alternative Payment Model Updates and the Increasing Organ Transplant 
Access (IOTA) Model Proposed Rule (2024 Proposed Rule), including 
through public comment, which CMS would like to incorporate into the 
IOTA Model, but were unable to add to the 2024 Final Rule. Therefore, 
this proposed rule proposes updates to the IOTA Model. The policies 
delineated in this proposed rule reflect our commitment to ensuring 
that the IOTA Model's incentive structure enhances the care delivery 
capabilities and efficiency of kidney transplant hospitals selected for 
participation, with the goal of improving quality of care while 
reducing program spending.
2. Statutory Authority and Background
    Section 1115A of the Act authorizes the Center for Medicare and 
Medicaid Innovation (the ``Innovation Center'') to test innovative 
payment and service delivery models expected to reduce Medicare, 
Medicaid, and CHIP expenditures, while preserving or enhancing the 
quality of care furnished to such programs' beneficiaries. We have 
designed and tested both voluntary Innovation Center models--governed 
by participation agreements, cooperative agreements, and model-specific 
addenda to existing contracts with CMS--and mandatory Innovation Center 
models that are governed by regulations. Each voluntary and mandatory 
model features its own specific payment methodology, quality metrics, 
and certain other applicable policies, but each model also features 
numerous provisions of a similar or identical nature, including 
provisions

[[Page 57602]]

regarding cooperation in model evaluation; monitoring and compliance; 
and beneficiary protections.
    Under the authority of section 1115A of the Act, through notice-
and-comment rulemaking, the CMS Innovation Center established the IOTA 
Model in the 2024 Final Rule that appeared in December 4, 2024, Federal 
Register (89 FR 96280). The intent of the IOTA Model is to reduce 
Medicare expenditures and improve performance in kidney transplantation 
by creating performance-based incentive payments for participating 
kidney transplant hospitals tied to access and quality of care for ESRD 
patients on the hospitals' waitlists.
    Participation in the IOTA Model is mandatory for approximately 50 
percent of all eligible kidney transplant hospitals in the United 
States, which were selected by a stratified random sampling of donation 
service areas (``DSAs''). Mandatory participation in the IOTA Model was 
determined to be necessary to minimize the potential for selection bias 
and to ensure a representative sample size nationally, thereby 
guaranteeing that there would be adequate data to evaluate the model 
test. Eligible kidney transplant hospitals included those that: (1) 
performed at least 11 kidney transplants for patients 18 years of age 
or older annually regardless of payer type during the 3-year period 
ending 12 months before the model's start date; and (2) furnished more 
than 50 percent of the hospital's annual kidney transplants to patients 
18 years of age or older during that same period. As this is a 
mandatory model, the selected kidney transplant hospitals are required 
to participate.
    CMS measures and assesses IOTA participant performance during each 
PY across three performance domains: achievement, efficiency, and 
quality. The achievement domain assesses each IOTA participant on the 
number of kidney transplants performed during a PY, relative to a 
participant-specific transplant target. The efficiency domain assesses 
the performance of IOTA participants on the organ offer acceptance rate 
ratio relative to national ranking. The quality domain is focused on 
improving the quality of care and measures IOTA participants 
performance on the composite graft survival rate relative to national 
ranking to assess post-transplant outcomes. Each IOTA participant's 
performance score across these three domains determines its final 
performance score and corresponding amount for the performance-based 
incentive payment that CMS will pay to or the payment that will be owed 
by the IOTA participant. The upside risk payment will be a lump sum 
payment paid by CMS after the end of a PY to an IOTA participant with a 
final performance score of 60 or greater. Conversely, beginning PY 2, 
the downside risk payment will be a lump sum payment paid to CMS by any 
IOTA participant with a final performance score of 40 or lower. There 
is no downside risk payment for PY 1 of the IOTA Model.

B. Provisions of the Proposed Regulation

1. IOTA Participants
a. Background
    In the 2024 Final Rule (89 FR 96304), we defined ``IOTA 
participant'' as a kidney transplant hospital, as defined at Sec.  
512.402, that is required to participate in the IOTA Model pursuant to 
Sec.  512.412. In addition, we noted that the definition of ``model 
participant'' contained in 42 CFR 512.110, would include an IOTA 
participant. We also proposed and finalized at Sec.  512.402 the 
definition of ``transplant hospital,'' ``kidney transplant hospital,'' 
and ``kidney transplant.'' We stated that kidney transplant hospitals 
are the focus of the IOTA Model because they are the entities that 
furnish kidney transplants to ESRD patients on the waiting list and 
ultimately decide to accept donor recipients as transplant candidates 
(89 FR 96303). Kidney transplant hospitals play a key role in managing 
transplant waitlists and patient, family, and caregiver readiness. They 
are also responsible for the coordination and planning of kidney 
transplantation with the organ procurement organizations (OPO) and 
donor facilities, staffing and preparation for kidney transplantation, 
and oversight of post-transplant patient care, and they are largely 
responsible for managing the living donation process. The IOTA Model is 
intended to promote improvement activities across selected kidney 
transplant hospitals that reduce access barriers, thereby increasing 
the number of transplants, quality of care, and cost-effective 
treatment. The IOTA Model aims to improve quality of care for ESRD 
patients on the waiting list pre-transplant, during transplant, and 
during post-transplant care.
b. Mandatory Participation
    In the 2024 Final Rule (89 FR 96308), we finalized that 
participation in the IOTA Model would be mandatory. We proposed and 
finalized that all kidney transplant hospitals that meet the 
eligibility requirements at Sec.  512.412(a), and that are selected 
through the participation selection process at Sec.  512.412(b) and (c) 
would be required to participate in the IOTA Model. Lastly, we also 
finalized our provisions for participant eligibility criteria for 
kidney transplant hospitals at Sec.  512.412(a) for all eligible kidney 
transplant hospitals selected for participation in the model.
    As stated in the 2024 Final Rule (89 FR 96308), we proposed kidney 
transplant hospital participant eligibility criteria that would 
increase the likelihood that: (1) individual kidney transplant 
hospitals selected as IOTA participants represent a diverse array of 
capabilities across the performance domains; and (2) the results of the 
model test would be statistically valid, reliable, and generalizable to 
kidney transplant hospitals nationwide should the model test be 
successful and considered for expansion under section 1115A(c) of the 
Act.
    We proposed and finalized our participant eligibility criteria for 
kidney transplant hospitals at Sec.  512.412(a) in the 2024 Final Rule 
(89 FR 96311). Specifically, that eligible kidney transplant hospitals 
are those that: (1) performed 11 or more transplants for patients aged 
18 years or older annually, regardless of payer type, each of the 
baseline years and (2) furnished more than 50 percent of its kidney 
transplants annually to patients over the age of 18 during each of the 
baseline years. We also finalized the definition of ``non-pediatric 
facility'' and ``baseline years'' at Sec.  512.402.
    In the 2024 Final Rule, we finalized at Sec.  512.412(a)(1) a low 
volume threshold requiring a kidney transplant hospital to have 
performed 11 or more kidney transplants for patients aged 18 years or 
older annually in each of the 3 baseline years in order to be eligible 
for selection into the IOTA Model.
    In our initial proposal in the 2024 Proposed Rule, we stated that 
we alternatively considered using a higher threshold, such as 30 adult 
kidney transplants or 50 adult kidney transplants during each of the 3 
baseline years (89 FR 43541). However, we found that many kidney 
transplant hospitals consistently perform between 11 and 50 transplants 
per year. We received several comments expressing concern with the 
proposed low-volume kidney transplant threshold for IOTA participants. 
As described in the 2024 Final Rule at 89 FR 96309, a commenter noted 
that there may be some unforeseen or unintended consequences of 
advantaging programs classified as ``low volume,'' where the volume is 
close to the dividing line, and vice versa. Additional commenters 
shared concerns that the low volume threshold of 11 kidney transplants 
performed will

[[Page 57603]]

disadvantage kidney transplant hospitals that furnish a smaller number 
of kidney transplants, as these transplant programs do not meet the 
requirements for Center of Excellence (COE) programs and have limited 
contracts with payers, and the low volume threshold does not ensure 
statistical significance. Several commenters recommended that CMS 
should increase the low volume threshold, setting the number of kidney 
transplants at a value such as 25, 50, or 100, to ensure statistical 
significance and avoid burden on kidney transplant hospitals that 
furnish a smaller number of kidney transplants. Finally, a commenter 
suggested CMS should only use the number of Medicare kidney transplants 
to determine eligibility, rather than 11 kidney transplants across all 
payers. Additionally, as described at 89 FR 96308 a commenter expressed 
concerns about the impact of the IOTA Model on small kidney transplant 
hospitals if participation was made mandatory. The commenter suggested 
that a low volume threshold of 100 kidney transplants, regardless of 
payer type, would be more appropriate. This, the commenter believed, 
would ensure small kidney transplant hospitals were excluded and 
protect access to kidney transplants in less populated areas.
    In the 2024 Final Rule, we stated that the low volume threshold was 
designed to protect the confidentiality of Medicare and Medicaid 
beneficiaries and that this low volume threshold aligns with the 
minimum standards for CMS data display, preventing the release of 
information that could identify individual beneficiaries while ensuring 
statistical significance (89 FR 96309). Additionally, we stated that we 
excluded these low-volume kidney transplant hospitals that may lack the 
capacity to comply with the model's policies.
    Since publication of the 2024 Final Rule, some IOTA participants 
close to the current low volume threshold have expressed concern about 
their ability to participate in the model and we believe it is 
necessary to reevaluate the low volume threshold requiring a kidney 
transplant hospital to have performed 11 or more kidney transplants for 
patients aged 18 years or older, regardless of payer, annually in each 
of the 3 baseline years in order to be eligible for selection into the 
IOTA Model. We also received multiple comments from the 2024 Proposed 
Rule urging us to increase the low volume threshold. As such, in this 
proposed rule, we are proposing at Sec.  512.412(a)(1) to raise this 
low volume threshold from a minimum of 11 kidney transplants performed 
annually during each of the baseline years to a minimum of 15 kidney 
transplants performed annually during each of the baseline years. We 
are also proposing this provision in response to our experience in 
operating the model. IOTA participants who are above the current 
minimum threshold of 11 kidney transplants performed annually, but 
below the updated proposed threshold of a minimum of 15 kidney 
transplants performed annually are still quite small and have indicated 
structural difficulties in achieving the goals of the model and 
complying with the requirements of the model. This updated low volume 
threshold is designed to balance accommodating the needs of smaller 
kidney transplant hospitals to ensure that their transplant programs 
can remain viable and continue to serve their communities, while also 
trying to ensure a sufficient volume of kidney transplant hospitals to 
be able to test the model.
    We alternatively considered higher low volume thresholds, such as 
20 kidney transplants or 25 kidney transplants performed for patients 
aged 18 years or older annually, regardless of payer, during each of 
the baseline years, but think that a low volume threshold of 15 kidney 
transplants or more performed to patients aged 18 years or older 
annually best balances excluding the smallest kidney transplant 
hospitals, while still being able to ensure that the model has 
sufficient power to be able to test the model. This proposed updated 
low volume threshold would only result in the removal of one IOTA 
participant as of the model start date, while higher thresholds would 
result in additional IOTA participants being removed, which could 
diminish the ability to evaluate the model.
    We seek comment on our proposal to adjust the low volume threshold 
at Sec.  512.412(a)(1) to require that to be eligible for model 
participation, a kidney transplant hospital must have performed a 
minimum of 15 kidney transplants to patients aged 18 years or older 
annually, regardless of payer, each of the baseline years, rather than 
a minimum of 11 kidney transplants. We also seek public comment on the 
alternatives considered.
    Additionally, since publication of the 2024 Final Rule, CMS has 
completed IOTA participant selection and notified IOTA participants of 
their selection to participate in the IOTA Model. Upon completion of 
selecting IOTA participants for inclusion in the model, we realized 
that an unintended consequence of the current participant eligibility 
criteria at Sec.  512.412(a) is that Department of Veterans Affairs 
(VA) medical facilities or military medical hospitals, also known as 
military medical treatment facilities (MTFs) could be selected to 
participate even though Medicare does not provide reimbursement for VA 
medical facilities or MTFs. A total of 103 kidney transplant hospitals 
were selected to participate in the model, including four VA medical 
facilities and one MTF.
    Per 42 CFR 411.6(a), Medicare does not pay for services rendered by 
Federal providers of services or other Federal agencies. Additionally, 
Medicare does not provide payment for services that receive direct or 
indirect funding from a governmental entity (see 42 CFR 411.8). As such 
we propose to update the participant eligibility criteria at Sec.  
512.412(a). Specifically, we are proposing at Sec.  512.412(a)(3) to 
exclude kidney transplant hospitals that are a MTF or VA medical 
facility from being eligible to participate in the IOTA Model. We 
propose at Sec.  512.402 to define a ``VA medical facility'' as defined 
at 38 CFR 17.1505 to mean a VA hospital, a VA community-based 
outpatient clinic, or a VA health care center, any of which must have 
at least one full-time primary care physician, but not a Vet Center or 
Readjustment Counseling Service Center. Additionally, we propose at 
Sec.  512.402 to define a ``military medical treatment facility (MTF)'' 
as it is currently defined at 10 U.S.C. 1073c(j)(3) to mean: (1) any 
fixed facility of the Department of Defense that is outside of a 
deployed environment and used primarily for health care; and (2) any 
other location used for purposes of providing healthcare services as 
designated by the Secretary of Defense.
    Given that Medicare does not provide coverage for services 
furnished by a federal provider, federal agency, or any other 
government entity, whether the services are paid for directly or 
indirectly by a government source, we believe that VA medical 
facilities and MTFs should not be eligible to participate in the IOTA 
Model. Additionally, we do not believe that our proposal to exclude 
kidney transplant hospitals that are also a VA medical hospital or MTF 
from being eligible to participate in the IOTA Model would negatively 
affect the remaining IOTA participants or impact the IOTA Model nor 
CMS's ability to evaluate the model. Moreover, the model's evaluation 
would benefit from an analysis that only focuses on Medicare-
participating kidney transplant hospitals. Since the fundamental 
purpose of the IOTA Model is to test interventions specifically within 
the Medicare system to improve quality of care and reduce

[[Page 57604]]

Medicare expenditures, including non-Medicare participating facilities 
like VA medical facilities and MTFs would introduce confounding 
variables that could obscure the model's true effectiveness. VA medical 
facilities and MTFs operate under entirely different payment 
structures, regulatory frameworks, and patient populations compared to 
Medicare-participating hospitals, making direct performance comparisons 
inappropriate and potentially misleading.
    By excluding these facilities, the model evaluation can focus on a 
group of hospitals that all operate under similar Medicare 
reimbursement conditions, face comparable regulatory requirements, and 
serve similar patient populations, thereby providing more accurate data 
on whether the model's performance-based payment incentives actually 
drive improvements in transplant outcomes and cost efficiency within 
the Medicare system. This approach would also eliminate the analytical 
complexity of trying to account for the vastly different operational 
contexts between Medicare-participating kidney transplant hospitals and 
federal facilities, ultimately yielding more actionable insights for 
potential broader implementation of the IOTA Model across the Medicare 
program.
    We seek comment on our proposal at proposed Sec.  512.412(a)(3) to 
exclude kidney transplant hospitals that are a MTF or VA medical 
facility as eligible to participate in the model. We also seek comments 
on our proposed definitions of MTF and VA medical facility at proposed 
Sec.  512.402.
    Lastly, to account for our proposed kidney transplant hospital 
participant eligibility criteria modifications at proposed Sec.  
512.412(a)(1) and (3), we propose updating the language at Sec.  
512.412(a). Specifically, we propose replacing ``meets both'' with 
``meets all'' to specify that a kidney transplant hospital is eligible 
to be selected as an IOTA participant, in accordance with the 
methodology described in proposed Sec.  512.412(b)(3), if the kidney 
transplant hospital meets all of the eligibility criteria at Sec.  
512.412(a).
    We seek comment on our proposal at proposed Sec.  512.412(a) to 
update existing language to account for our proposals at proposed Sec.  
512.412(a)(1) and (3).
2. Performance Assessment
a. Method and Scoring Overview
    In the 2024 Final Rule (89 FR 96326), we finalized provisions to 
assess IOTA participants in the achievement domain, efficiency domain 
and quality domain and performance scoring approach at Sec.  
512.422(a). We also finalized at Sec.  512.402 the definition of 
``final performance score'' as the aggregate sum of scores earned by 
the IOTA participant across all three domains for a designated PY.
b. Quality Domain
(1) Background
    In the 2024 Final Rule (89 FR 96358), we finalized at Sec.  512.402 
the definition of ``quality domain'' as the performance assessment 
category in which CMS assesses the IOTA participant's performance using 
a performance measure focused on improving the quality of transplant 
care as described in Sec.  512.428. We also finalized general 
provisions for the quality domain at Sec.  512.424(a).
    We stated at 89 FR 96358, that our goal for the quality domain 
within the IOTA Model is to achieve acceptable post-transplant outcomes 
while incentivizing increased kidney transplant volume.\2\ We continue 
to believe that transplant hospital accountability for patient-
centricity and clinical outcomes continues post-transplantation. While 
transplant outcomes have historically received the most attention, 
often at the exclusion of other factors, we sought to encourage a 
better balance in the system to offer the benefits of transplant to 
more patients.
---------------------------------------------------------------------------

    \2\ We note that the definition and criteria for ``acceptable'' 
post-transplant outcomes has not been defined and we are seeking 
comment on how to define an acceptable level (for example, 1 
standard deviation of the national risk-adjusted rate or some other 
way), as stated in section II.B.2.b(2) of this proposed rule.
---------------------------------------------------------------------------

(2) Post Transplant Outcomes
    In the 2024 Final Rule (89 FR 96361), we finalized at Sec.  
512.428(b)(1) a provision to assess IOTA participant performance each 
PY on post-transplant outcomes using the composite graft survival rate. 
We also proposed and finalized at Sec.  512.402 the definition of 
composite graft survival rate (89 FR 96361).
(a) Calculation of Metric
    In the 2024 Final Rule (89 FR 96364), we proposed and finalized 
provisions for calculating the composite graft survival rate at Sec.  
512.428(b)(1).
    In our initial proposal in the 2024 Proposed Rule (89 FR 43563), we 
stated that we had considered incorporating a risk-adjustment 
methodology into our proposed composite graft survival equation, such 
as the one used by Scientific Registry of Transplant Recipients (SRTR) 
for 1-year post-transplant outcomes conditional on 90-day survival or 
constructing our own. We also stated at 89 FR 43563 that we were 
interested in comments on whether risk-adjustments were necessary, and 
which ones, such as transplant recipient and donor characteristics, 
would be significant and clinically appropriate in the context of our 
proposed approach. We received over 15 comments expressing concern that 
the lack of risk-adjustment in the composite graft survival rate metric 
could have adverse consequences and would add additional administrative 
burden. As described at 89 FR 96362, many commenters expressed concern 
that the unadjusted composite graft survival rate does not account for 
the clinical risk factors of the transplant recipient or the donor; 
therefore, it may inadvertently lead to disparities in transplant 
access by incentivizing IOTA participants to select healthier patients 
for transplantation. Several commenters believe that the proposed 
measure misaligned with the model's goal of increasing kidney 
transplants in a more complex population without risk-adjusting for 
allograft and recipient factors. Without proper risk-adjustment, these 
commenters suggested the proposed measure could cause IOTA participants 
to be more risk averse with the types of organs they accept or 
disincentivize IOTA participants from transplanting candidates who have 
a higher likelihood of graft failure, such as older candidates or those 
with more comorbid conditions. Some commenters suggested specific 
transplant recipient and donor characteristics that CMS should risk-
adjust for when calculating the proposed composite graft survival rate.
    In the 2024 Final Rule (89 FR 96363), we stated that in light of 
commenters suggestions, we considered finalizing a risk-adjustment 
methodology that adjusted for donor age, recipient age, and recipient 
diabetes. However, we decided to finalize the provisions as proposed as 
we did not believe that adjusting for these three variables alone was 
appropriate. Organ availability affects kidney transplantation, leading 
transplant teams to expand the criteria for accepting organ donors.\3\ 
In these circumstances, we believe that analysis of the impact of the 
donor's characteristics on graft survival becomes mandatory before 
incorporating a risk-adjustment methodology. Additionally, given that 
the IOTA Model is 6 years,

[[Page 57605]]

and the measure is rolling, meaning that it measures the rolling total 
number of functioning grafts relative to the total number of adult 
kidney transplants performed for all 6 years, as described in the 2024 
Final Rule at 89 FR 96324, we wanted to continue discussions to ensure 
that this measure eventually includes a robust and appropriate risk-
adjustment methodology. Furthermore, we continue to believe that the 
lack of risk-adjustment for PY 1 would be minimal in terms of impacting 
IOTA participants scores and note that IOTA participants do not owe a 
downside risk payment in PY 1, as described in Sec.  512.430(b)(3)(i). 
We also note that in the 2024 Final Rule at 89 FR 96364, we stated that 
while we were finalizing our provision for calculating the composite 
graft survival rate as proposed, we would be stratifying the data from 
the composite graft survival rate measure to inform a risk-adjustment 
methodology for this measure and might consider future notice and 
comment rulemaking on this topic.
---------------------------------------------------------------------------

    \3\ Olawade, D.B., Marinze, S., Qureshi, N., Weerasinghe, K., & 
Teke, J. (2024). Transforming organ donation and transplantation: 
Strategies for increasing donor participation and system efficiency. 
European Journal of Internal Medicine. <a href="https://doi.org/10.1016/j.ejim.2024.11.010">https://doi.org/10.1016/j.ejim.2024.11.010</a>.
---------------------------------------------------------------------------

    Since publication of the 2024 Final Rule, many IOTA participants 
have urged CMS to include a risk-adjustment methodology in the 
composite graft survival rate calculation. As such, in this proposed 
rule, we are proposing at Sec.  512.428(b)(2) to include a risk-
adjustment methodology in the composite graft survival rate 
calculation. Specifically, we propose at Sec.  512.428(b)(2)(i)(A) and 
(B) that CMS would, in accordance with Sec.  512.428(b)(1) through (3), 
risk-adjust the composite graft survival rate to account for multiple 
transplant recipient and donor characteristics, that includes at 
minimum the following:
    <bullet> Transplant recipient characteristics:
    ++ Age.
    ++ Sex.
    ++ Kidney function (eGFR/creatinine).
    ++ Diabetes status.
    ++ Hypertension with or without cardiovascular disease.
    ++ Human leukocyte antigen (HLA) mismatch.
    ++ Plasma renin activity (PRA) levels.
    <bullet> Donor characteristics:
    ++ Age.
    ++ Sex.
    ++ Kidney function (eGFR/creatinine).
    ++ Diabetes status.
    ++ Hypertension history with or without cardiovascular disease.
    ++ Cardiovascular disease.
    ++ Human leukocyte antigen (HLA) mismatch.
    ++ Plasma renin activity (PRA) levels.
    ++ Cause of death.
    ++ Donation after cardiac death.
    We believe that the proposed transplant recipient and donor 
characteristics represent well-established, non-modifiable predictors 
that significantly influence graft survival independent of care 
quality. For example, advanced transplant recipient age increases 
mortality and cardiovascular complications, while sex-based differences 
in immune response and medication metabolism create distinct risk 
profiles requiring fair assessment.\4\ \5\ Diabetes, hypertension, and 
cardiovascular disease represent major outcome determinants present at 
transplantation that are largely beyond transplant hospitals' short-
term control.\6\ \7\ \8\ Donor age correlates with reduced nephron mass 
and shorter graft lifespan, while cause of death and donation type 
significantly affect both immediate function and long-term survival, 
creating substantial organ quality variation across centers.\9\ Higher 
HLA mismatch increases rejection likelihood independent of clinical 
management quality, while elevated PRA levels indicate pre-existing 
sensitization creating immunological barriers that require intensive 
immunosuppression--both characteristics determined by factors largely 
beyond a kidney transplant hospital's control.\10\ \11\ Given the 
scarcity of donor organs and the IOTA Model's imperative to maximize 
transplant opportunities, risk-adjusted allocation strategies support 
accepting suboptimal immunological compatibility when clinically 
appropriate.\12\
---------------------------------------------------------------------------

    \4\ Schwager, Y., Littbarski, S.A., Nolte, A., Kaltenborn, A., 
Emmanouilidis, N., Kleine-D[ouml]pke, D., Klempnauer, J., & Schrem, 
H. (2019). Prediction of Three-Year Mortality After Deceased Donor 
Kidney Transplantation in Adults with Pre-Transplant Donor and 
Recipient Variables. Annals of Transplantation, 24, 273-290. <a href="https://doi.org/10.12659/aot.913217">https://doi.org/10.12659/aot.913217</a>.
    \5\ So, S., Au, E.H., Lim, W.H., Lee, V.W., & Wong, G. (2020). 
Factors influencing Long-Term patient and allograft outcomes in 
elderly kidney transplant recipients. Kidney International Reports, 
6(3), 727-736. <a href="https://doi.org/10.1016/j.ekir.2020.11.035">https://doi.org/10.1016/j.ekir.2020.11.035</a>.
    \6\ Schwager, Y., Littbarski, S.A., Nolte, A., Kaltenborn, A., 
Emmanouilidis, N., Kleine-D[ouml]pke, D., Klempnauer, J., & Schrem, 
H. (2019). Prediction of Three-Year Mortality After Deceased Donor 
Kidney Transplantation in Adults with Pre-Transplant Donor and 
Recipient Variables. Annals of Transplantation, 24, 273-290. <a href="https://doi.org/10.12659/aot.913217">https://doi.org/10.12659/aot.913217</a>.
    \7\ So, S., Au, E.H., Lim, W.H., Lee, V.W., & Wong, G. (2020). 
Factors influencing Long-Term patient and allograft outcomes in 
elderly kidney transplant recipients. Kidney International Reports, 
6(3), 727-736. <a href="https://doi.org/10.1016/j.ekir.2020.11.035">https://doi.org/10.1016/j.ekir.2020.11.035</a>.
    \8\ Nishio, A.G., Patel, A., Mehta, S., Yadav, A., Doshi, M., 
Urbanski, M.A., Concepcion, B.P., Singh, N., Sanders, M.L., Basu, 
A., Harding, J.L., Rossi, A., Adebiyi, O.O., Samaniego-Picota, M., 
Woodside, K.J., & Parsons, R.F. (2024). Expanding the access to 
kidney transplantation: Strategies for kidney transplant programs. 
Clinical Transplantation, 38(5). <a href="https://doi.org/10.1111/ctr.15315">https://doi.org/10.1111/ctr.15315</a>.
    \9\ Watson, C.J.E., Johnson, R.J., Birch, R., Collett, D., & 
Bradley, J.A. (2012). A Simplified Donor Risk Index for Predicting 
Outcome After Deceased Donor Kidney Transplantation. 
Transplantation, 93(3), 314-318. <a href="https://doi.org/10.1097/tp.0b013e31823f14d4">https://doi.org/10.1097/tp.0b013e31823f14d4</a>.
    \10\ Ibid.
    \11\ Schwager, Y., Littbarski, S.A., Nolte, A., Kaltenborn, A., 
Emmanouilidis, N., Kleine-D[ouml]pke, D., Klempnauer, J., & Schrem, 
H. (2019). Prediction of Three-Year Mortality After Deceased Donor 
Kidney Transplantation in Adults with Pre-Transplant Donor and 
Recipient Variables. Annals of Transplantation, 24, 273-290. <a href="https://doi.org/10.12659/aot.913217">https://doi.org/10.12659/aot.913217</a>.
    \12\ Riley S, Zhang Q, Tse WY, Connor A, Wei Y. Using 
information available at the time of donor offer to predict kidney 
transplant survival Outcomes: A Systematic Review of Prediction 
Models. Transplant International. 2022;35. https://doi:10.3389/
ti.2022.10397.
---------------------------------------------------------------------------

    We propose at Sec.  512.428(b)(2)(ii)(A) that CMS would analyze the 
transplant recipient and donor characteristics as specified at proposed 
Sec.  512.428(b)(2)(i)(A) and (B). We also propose at Sec.  
512.428(b)(2)(ii)(B) that CMS would then apply a risk score to each 
individual IOTA transplant patient, as defined at Sec.  512.402, based 
on the analysis of the transplant recipient and donor characteristics 
at proposed Sec.  512.428(b)(2)(ii)(A). Lastly, we propose at Sec.  
512.428(b)(2)(ii)(C)(1) and (2) that CMS would use the calculated 
composite graft survival rate risk scores identified at proposed Sec.  
512.428(b)(2)(ii)(B) to--
    <bullet> Normalize the composite graft survival rate outcome to 
control for differences in kidney transplant patient risk; and
    <bullet> Adjust the composite graft survival rate, based on the 
normalized composite graft survival rate outcome.
    We believe this systematic approach to risk-adjusting kidney 
transplantation ensures standardized care delivery while accommodating 
individual kidney transplant patient needs and optimizing long-term 
outcomes through evidence-based protocols, and continuous quality 
improvement initiatives. Risk-adjustment accounts for factors that are 
associated with the outcome, vary across providers, and are unrelated 
to quality of care, so that measure scores reflect true differences in 
quality of care.\13\ Accounting for case-mix differences is important 
because it recognizes that some IOTA participants care for older or 
sicker kidney transplant patients who have lower graft survival rates. 
Through the proposed

[[Page 57606]]

risk-adjustment modeling, we believe an appropriate outcome rate is set 
for IOTA participants who care for kidney transplant patients with 
certain risk factors, decreasing the incentive to select younger, 
healthier patients for transplantation.
---------------------------------------------------------------------------

    \13\ So, S., Au, E.H., Lim, W.H., Lee, V.W., & Wong, G. (2020). 
Factors influencing Long-Term patient and allograft outcomes in 
elderly kidney transplant recipients. Kidney International Reports, 
6(3), 727-736. <a href="https://doi.org/10.1016/j.ekir.2020.11.035">https://doi.org/10.1016/j.ekir.2020.11.035</a>.
---------------------------------------------------------------------------

    We seek comments on our proposed composite graft survival rate 
risk-adjustment methodology at proposed Sec.  512.428(b)(2). We also 
seek comment on what transplant recipient and donor characteristics, 
infectious disease status or other medically complex factors, 
transplant recipient comorbidity burden, and immunological risk factors 
would be significant and clinically appropriate to include in the 
proposed risk-adjustment methodology for the composite graft survival 
rate metric.
    We considered all recommendations made by public commenters in the 
2024 Final Rule. For example, a commenter believed that CMS should 
risk-adjust for at least a small number of factors that would allow for 
a simple model that is understandable by including the biggest drivers 
for variation in outcomes and thereby disincentivize the creation of 
additional hurdles for more complex transplant recipients (89 FR 
96361). The same commenter believed that a risk-adjustment model that 
includes age, ESRD vintage, and diabetes mellitus (y/n) would leverage 
currently available data and remain easily measurable and understood. 
We strongly considered this recommendation and chose to propose a 
similar approach with different factors to account for more scenarios 
and to reduce the chance of disincentivizing transplantation.
    Multiple commenters in the 2024 Final Rule and some IOTA 
participants advocated for the adoption of the SRTR risk-adjustment 
methodology, which is presently utilized by both the Organ Procurement 
and Transplantation Network (OPTN) and CMS in existing programs. The 
SRTR risk-adjustment framework incorporates comprehensive adjustments 
for both transplant recipient and donor characteristics, undergoes 
annual updates to maintain currency, and is subject to validation and 
testing protocols. During each transplant program-specific report (PSR) 
cycle, the SRTR conducts a comprehensive refit of the graft survival 
prediction model, systematically evaluating numerous potential 
predictor variables to optimize the model's predictive accuracy and 
clinical relevance. The SRTR calculates the kidney donor risk index 
(KDRI) in accordance with the methodology established by Rao et al.\14\ 
As such, we also considered, but did not propose, using SRTR's 1-year 
post-transplant outcomes risk-adjustment methodology for adult (18+) 
kidney graft survival with deceased and living donors, which includes a 
defined list of transplant recipient and donor characteristics included 
in the calculation that are updated periodically.\15\ There is 
empirical support for sophisticated risk-adjustment methodologies like 
SRTR's, while acknowledging the need for ongoing refinement as 
unmeasured risk factors are identified and measurement precision 
improves.\16\ \17\ However, we believe this would require increased 
sophistication and attention from IOTA participants to interpret the 
additional information required and also require additional 
communications and education resources at transplant hospitals, 
potentially at Organ Procurement Organizations (OPO), and national 
levels.\18\
---------------------------------------------------------------------------

    \14\ Rao, P.S., Schaubel, D.E., Guidinger, M.K., Andreoni, K.A., 
Wolfe, R.A., Merion, R.M., Port, F.K., & Sung, R.S. (2009). A 
Comprehensive Risk Quantification Score for Deceased Donor Kidneys: 
The Kidney Donor Risk Index. Transplantation, 88(2), 231-236. 
<a href="https://doi.org/10.1097/TP.0b013e3181ac620b">https://doi.org/10.1097/TP.0b013e3181ac620b</a>.
    \15\ Technical methods for the Program-Specific reports. (n.d.-
b). <a href="https://www.srtr.org/about-the-data/technical-methods-for-the-program-specific-reports/">https://www.srtr.org/about-the-data/technical-methods-for-the-program-specific-reports/</a>.
    \16\ Axelrod, D.A., Schwantes, I.R., Harris, A.H., Hohmann, 
S.F., Snyder, J.J., Balakrishnan, R., Lentine, K.L., Kasiske, B.L., 
& Schnitzler, M.A. (2022). The need for integrated clinical and 
administrative data models for risk adjustment in assessment of the 
cost transplant care. Clinical Transplantation, 36 (12), e14817. 
<a href="https://doi.org/10.1111/ctr.14817">https://doi.org/10.1111/ctr.14817</a>.
    \17\ Israni, A.K., Hirose, R., Segev, D.L., Hart, A., 
Schaffhausen, C.R., Axelrod, D.A., Kasiske, B.L., & Snyder, J.J. 
(2022). Toward continuous improvement of Scientific Registry of 
Transplant Recipients performance reporting: Advances following 2012 
consensus conference and future consensus building for 2022 
consensus conference. Clinical Transplantation, 36 (8), e14716. 
<a href="https://doi.org/10.1111/ctr.14716">https://doi.org/10.1111/ctr.14716</a>.
    \18\ Technical methods for the Program-Specific reports. (n.d.-
b). <a href="https://www.srtr.org/about-the-data/technical-methods-for-the-program-specific-reports/">https://www.srtr.org/about-the-data/technical-methods-for-the-program-specific-reports/</a>.
---------------------------------------------------------------------------

    Additionally, SRTR implements more frequent model rebuilds in 
addition to refitting the models every 6 months. The purpose of 
rebuilding each cycle is to ensure that new transplant recipient and 
donor characteristics are incorporated into the risk-adjustment 
methodology. Therefore, for the purposes of risk-adjusting the 
composite graft survival rate, we considered, but did not propose, 
using only SRTR's post-transplant outcomes adult kidney model strata 
and most recently available set of coefficients. Alternatively, we also 
considered but did not propose utilizing a more limited set of 
characteristics than those employed by SRTR for simplification 
purposes.
    A primary criticism of the SRTR risk-adjustment framework concerns 
the potential for encouraging risk aversion.\19\ \20\ \21\ \22\ \23\ 
\24\ Kidney transplant hospitals may prioritize statistical performance 
over kidney transplant waitlist patient access to care, potentially 
limiting transplant opportunities for kidney transplant waitlist 
patients who would benefit despite higher risk profiles.\25\ There have 
been persistent questions about ``whether the OPTN data are adequate 
for risk-adjustments used in SRTR program-specific reporting.'' \26\ 
While the current methodology provides adequate risk-adjustment for 
available data, the collection of additional risk factors such as local 
comorbidity indexes, community risk factors, cardiovascular risk 
factors, and anatomical abnormalities or vascular injury in donor 
kidneys could further

[[Page 57607]]

enhance the accuracy and fairness of IOTA Model evaluations.\27\ Given 
that the objective of the IOTA Model is to increase kidney transplant 
volume, we did not propose using SRTR's risk-adjustment methodology or 
using only SRTR's post-transplant outcomes adult kidney model strata 
and most recently available set of coefficients due to concerns that it 
creates stronger incentives for risk aversion compared to alternative 
approaches. Additionally, given that the composite graft survival rate 
is a rolling measure, we also had operational concerns in the use of 
SRTRs risk-adjustment methodology in future PYs.
---------------------------------------------------------------------------

    \19\ Schenk, A.D., Logan, A.J., Sneddon, J.M., Faulkner, D., 
Han, J.L., Brock, G.N., & Washburn, W.K. (2022). Textbook Outcome as 
a Quality Metric in Living and Deceased Donor Kidney 
Transplantation. Journal of the American College of Surgeons, 
235(4), 624-642. <a href="https://doi.org/10.1097/xcs.0000000000000301">https://doi.org/10.1097/xcs.0000000000000301</a>.
    \20\ Kasiske, B.L., Salkowski, N., Wey, A., Israni, A.K., & 
Snyder, J.J. (2018). Scientific Registry of Transplant Recipients 
program-specific reports: where we have been and where we are going. 
Current Opinion in Organ Transplantation, 24(1), 58-63. <a href="https://doi.org/10.1097/mot.0000000000000597">https://doi.org/10.1097/mot.0000000000000597</a>.
    \21\ Jay, C., & Schold, J.D. (2017). Measuring Transplant Center 
Performance: the Goals Are Not Controversial but the Methods and 
Consequences Can Be. Current Transplantation Reports, 4(1), 52-58. 
<a href="https://doi.org/10.1007/s40472-017-0138-9">https://doi.org/10.1007/s40472-017-0138-9</a>.
    \22\ Snyder, J.J., Salkowski, N., Wey, A., Israni, A.K., Schold, 
J.D., Segev, D.L., & Kasiske, B.L. (2016). Effects of High-Risk 
Kidneys on Scientific Registry of Transplant Recipients Program 
Quality Reports. American Journal of Transplantation, 16(9), 2646-
2653. <a href="https://doi.org/10.1111/ajt.13783">https://doi.org/10.1111/ajt.13783</a>.
    \23\ Bowring, M.G., Massie, A.B., Craig-Schapiro, R., Segev, 
D.L., & Nicholas, L.H. (2018). Kidney offer acceptance at programs 
undergoing a Systems Improvement Agreement. American Journal of 
Transplantation, 18(9), 2182-2188. <a href="https://doi.org/10.1111/ajt.14907">https://doi.org/10.1111/ajt.14907</a>.
    \24\ Abecassis, M.M., Burke, R., Klintmalm, G.B., Matas, A.J., 
Merion, R.M., Millman, D., Olthoff, K., & Roberts, J.P. (2009). 
American Society of Transplant Surgeons Transplant Center Outcomes 
Requirements--A Threat to Innovation. American Journal of 
Transplantation, 9(6), 1279-1286. <a href="https://doi.org/10.1111/j.1600-6143.2009.02606.x">https://doi.org/10.1111/j.1600-6143.2009.02606.x</a>.
    \25\ Kasiske, B.L., Salkowski, N., Wey, A., Israni, A.K., & 
Snyder, J.J. (2018). Scientific Registry of Transplant Recipients 
program-specific reports: where we have been and where we are going. 
Current Opinion in Organ Transplantation, 24(1), 58-63. <a href="https://doi.org/10.1097/mot.0000000000000597">https://doi.org/10.1097/mot.0000000000000597</a>.
    \26\ Schenk, A.D., Logan, A.J., Sneddon, J.M., Faulkner, D., 
Han, J.L., Brock, G.N., & Washburn, W.K. (2022). Textbook Outcome as 
a Quality Metric in Living and Deceased Donor Kidney 
Transplantation. Journal of the American College of Surgeons, 
235(4), 624-642. <a href="https://doi.org/10.1097/xcs.0000000000000301">https://doi.org/10.1097/xcs.0000000000000301</a>.
    \27\ Snyder, J.J., Salkowski, N., Wey, A., Israni, A.K., Schold, 
J.D., Segev, D.L., & Kasiske, B.L. (2016). Effects of High-Risk 
Kidneys on Scientific Registry of Transplant Recipients Program 
Quality Reports. American Journal of Transplantation, 16(9), 2646-
2653. <a href="https://doi.org/10.1111/ajt.13783">https://doi.org/10.1111/ajt.13783</a>.
---------------------------------------------------------------------------

    We also considered but did not propose a risk-adjustment 
methodology that utilizes a Cox regression model,\28\ which accounts 
for time-to-event data and can handle censored observations, making it 
a strong potential option for risk-adjustment in transplant outcome 
studies. In this methodology, censored observations \29\ would include 
transplant recipients still alive at the end of the follow-up period, 
transplant recipients lost to follow-up before experiencing death or 
graft failure, and transplant recipients who withdrew from the study 
before the event occurred including two donor and five recipient 
variables.\30\ Cox regression models have been cited for strong 
performance with extreme categories, discriminative power, and 
interpretable results.\31\ \32\ \33\ This methodology also exhibits 
several inherent limitations, including restrictive assumptions 
concerning proportional hazards and linear effects of variables, 
inadequate handling of outliers within continuous variables and 
variable interactions, and constraints regarding the limited number of 
variables that can be incorporated into the modeling framework.\34\ 
\35\ While we recognize the importance of incorporating a time-to-event 
model in the risk-adjustment methodology to account for the length of 
graft survival, we chose not to propose a Cox regression model because 
it shows only moderate prediction accuracy overall and needs more 
validation.
---------------------------------------------------------------------------

    \28\ Cox regression, formally designated as Cox proportional 
hazards regression, constitutes a statistical methodology employed 
to examine the relationship between the time to event occurrence and 
one or more predictor variables. This analytical approach represents 
a robust statistical tool for investigating survival data, 
particularly when addressing time-to-event outcomes where the event 
of interest may encompass mortality, disease onset, or other 
clinically relevant occurrences.
    \29\ In the context of risk-adjustment, a censored observation 
refers to incomplete information about the true timing or occurrence 
of an outcome of interest, where only certain boundaries are known 
rather than the exact value. This phenomenon is particularly 
prevalent in healthcare risk adjustment models when tracking patient 
outcomes such as readmissions, complications, or mortality events. 
Properly accounting for censored observations through survival 
analysis methods is crucial in risk adjustment because ignoring 
censoring can lead to biased risk estimates, inaccurate patient 
stratification, and flawed predictive models that may unfairly 
penalize or reward healthcare providers based on incomplete outcome 
data.
    \30\ Senanayake, S., Kularatna, S., Healy, H., Graves, N., 
Baboolal, K., Sypek, M.P., & Barnett, A. (2021). Development and 
validation of a risk index to predict kidney graft survival: the 
kidney transplant risk index. BMC Medical Research Methodology, 
21(1). <a href="https://doi.org/10.1186/s12874-021-01319-5">https://doi.org/10.1186/s12874-021-01319-5</a>.
    \31\ Ibid.
    \32\ Abd ElHafeez, S., D'Arrigo, G., Leonardis, D., Fusaro, M., 
Tripepi, G., & Roumeliotis, S. (2021). Methods to Analyze Time-to-
Event Data: The Cox Regression Analysis. Oxidative Medicine and 
Cellular Longevity, 2021(1), 1-6. <a href="https://doi.org/10.1155/2021/1302811">https://doi.org/10.1155/2021/1302811</a>.
    \33\ Wey, A., Hart, A., Salkowski, N., Skeans, M., Kasiske, 
B.L., Israni, A.K., & Snyder, J.J. (2020). Posttransplant outcome 
assessments at listing: Long-term outcomes are more important than 
short-term outcomes. American Journal of Transplantation, 20(10), 
2813-2821. <a href="https://doi.org/10.1111/ajt.15911">https://doi.org/10.1111/ajt.15911</a>.
    \34\ Senanayake, S., Kularatna, S., Healy, H., Graves, N., 
Baboolal, K., Sypek, M.P., & Barnett, A. (2021). Development and 
validation of a risk index to predict kidney graft survival: the 
kidney transplant risk index. BMC Medical Research Methodology, 
21(1). <a href="https://doi.org/10.1186/s12874-021-01319-5">https://doi.org/10.1186/s12874-021-01319-5</a>.
    \35\ Scheffner, I., Gietzelt, M., Abeling, T., Marschollek, M., 
& Gwinner, W. (2020). Patient Survival After Kidney Transplantation: 
Important Role of Graft-sustaining Factors as Determined by 
Predictive Modeling Using Random Survival Forest Analysis. 
Transplantation, 104(5), 1095-1107. <a href="https://doi.org/10.1097/tp.0000000000002922">https://doi.org/10.1097/tp.0000000000002922</a>.
---------------------------------------------------------------------------

    We considered, but did not propose, a direct standardization risk-
adjustment approach. This method applies standard population risk 
profiles \36\ to all IOTA participants. Advantages to this method 
include simple interpretation and precedence in Care Compare.\37\ 
Disadvantages are that it requires large sample sizes and is less 
precise for smaller kidney transplant hospitals. We chose not to 
propose this method because it could disadvantage smaller IOTA 
participants.
---------------------------------------------------------------------------

    \36\ Standard population risk profiles represent a 
methodological framework that establishes a reference population to 
enable fair and meaningful comparisons between healthcare centers 
when patient populations exhibit different risk characteristics. The 
methodology employs all patients from all providers as the reference 
population, creating a uniform baseline against which all centers 
can be evaluated equitably. The process involves estimating the 
relationship between patient characteristics (represented as a 
vector of covariates X reflecting potential risk factors) and 
clinical outcomes for each healthcare center. This established 
relationship is then applied to all patients within the reference 
population to calculate expected outcomes as if every patient in the 
reference population had received treatment at each specific center 
under evaluation. Mathematically, this direct standardization 
approach can be expressed as d_c = (1/N) x [Sigma] p5Fc(X_i), where 
d_c represents the standardized outcome for center c, N denotes the 
total number of patients in the reference population, and p5Fc(X_i) 
represents the estimated probability for patient i's characteristics 
at center c.
    \37\ Schokkaert, E., & Van De Voorde, C. (2008). Direct versus 
indirect standardization in risk adjustment. Journal of Health 
Economics, 28(2), 361-374. <a href="https://doi.org/10.1016/j.jhealeco.2008.10.012">https://doi.org/10.1016/j.jhealeco.2008.10.012</a>.
---------------------------------------------------------------------------

    We considered, but did not propose, an indirect standardization 
(observed-to-expected ratios) risk-adjustment approach, which compares 
observed outcomes to expected outcomes based on a risk model. 
Advantages to this method are that it preserves competitive scoring 
while ensuring fairness, works well with small sample sizes, provides 
precise estimates, and has precedence with the ESRD Quality Incentive 
Program (QIP) Standardized Mortality Ratio (SMR).\38\ \39\ We chose not 
to propose this approach because of the complexity of designing a 
robust risk model.
---------------------------------------------------------------------------

    \38\ Ibid.
    \39\ Scheffner, I., Gietzelt, M., Abeling, T., Marschollek, M., 
& Gwinner, W. (2020). Patient Survival After Kidney Transplantation: 
Important Role of Graft-sustaining Factors as Determined by 
Predictive Modeling Using Random Survival Forest Analysis. 
Transplantation, 104(5), 1095-1107. <a href="https://doi.org/10.1097/tp.0000000000002922">https://doi.org/10.1097/tp.0000000000002922</a>.
---------------------------------------------------------------------------

    We considered, but did not propose, a hierarchical logistic 
regression approach with indirect standardization. This approach models 
graft survival probability at the individual transplant recipient level 
and accounts for kidney transplant hospital-level clustering 
effects.\40\ \41\ It produces observed-to-expected ratios for fair 
comparison and is compatible with cumulative measure calculation. The 
hierarchical logistic regression statistical model structure we 
considered using is illustrated in Equation 1:
---------------------------------------------------------------------------

    \40\ Hoffman, J.I. (2015). Survival analysis. In Elsevier eBooks 
(pp. 621-643). <a href="https://doi.org/10.1016/b978-0-12-802387-7.00035-4">https://doi.org/10.1016/b978-0-12-802387-7.00035-4</a>.
    \41\ Hoffman, J.I. (2015a). Logistic regression. In Elsevier 
eBooks (pp. 601-611). <a href="https://doi.org/10.1016/b978-0-12-802387-7.00033-0">https://doi.org/10.1016/b978-0-12-802387-7.00033-0</a>.
---------------------------------------------------------------------------

Equation 1: Considered Hierarchical Logistic Regression Equation
logit(Pij) = b<INF>0</INF> + b<INF>1</INF>(Age_ij) + 
b<INF>2</INF>(Diabetes_ij) + b<INF>3</INF>(DialysisVintage_ij) + 
b<INF>4</INF>(KDPI_ij) + b<INF>5</INF>(DCD_ij) + b<INF>6</INF>(PRA_ij) 
+ u_j

Where:

Pij = probability of graft survival for kidney transplant patient i 
in IOTA participant j
uj ~ N(O,[sigma]u2 represents random IOTA participant--level effects
b<SUP>0</SUP> = intercept
b<SUP>1</SUP>-b<SUP>6</SUP> = fixed effect coefficients for risk 
adjustment variables


[[Page 57608]]


    This equation risk-adjusts for age, diabetes status, dialysis 
vintage, Kidney Donor Profile Index (KDPI), Donation after Cardiac 
Death (DCD), which describes donors who are declared dead based on the 
cessation of circulatory and respiratory functions, and Panel Reactive 
Antibody (PRA). While we acknowledge that this approach demonstrates 
substantial technical merit, we believe that the level of complexity 
inherent in a hierarchical logistic regression statistical model 
structure would introduce operational risks and administrative burden. 
Transplant hospital-level variation may not be significant enough to 
warrant the added complexity,\42\ as such, we did not believe this was 
appropriate to propose for the IOTA Model.
---------------------------------------------------------------------------

    \42\ Leyland, A.H., & Groenewegen, P.P. (2020b). Multilevel 
Modelling for Public Health and Health Services Research. In 
Springer eBooks. Springer Nature. <a href="https://doi.org/10.1007/978-3-030-34801-4">https://doi.org/10.1007/978-3-030-34801-4</a>.
---------------------------------------------------------------------------

    We further considered, but did not propose, using machine learning-
based risk-adjustment methodology, which uses ensemble methods (random 
forests, gradient boosting) for risk prediction. Machine learning-based 
risk-adjustment methodology captures complex interactions and has high 
predictive accuracy, but we chose not to propose it due to concerns 
that stakeholders may resist the ``black box'' machine learning-based 
risk-adjustment methodology and the limited precedence in quality 
measurement or at CMS.\43\
---------------------------------------------------------------------------

    \43\ Weissman, G.E., & Maddox, K.E.J. (2023). Guiding risk 
adjustment models toward machine learning methods. JAMA, 330(9), 
807. <a href="https://doi.org/10.1001/jama.2023.12920">https://doi.org/10.1001/jama.2023.12920</a>.
---------------------------------------------------------------------------

    We seek comment on the alternatives considered. Although we are not 
proposing to include a risk-adjustment methodology that also accounts 
for time-to-event data, we seek comment on whether a risk-adjustment 
methodology that considers transplant recipient and donor 
characteristics in addition to time-to-event data would be appropriate 
for calculating the composite graft survival rate in the quality domain 
and the best approach to use. We also seek comments on whether the 
proposed risk adjustment methodology should also include a time-to-
event model when calculating the composite graft survival rate in the 
quality domain.
    In the 2024 Final Rule (89 FR 96364), we finalized inclusion and 
exclusion criteria for the numerator and denominator when calculating 
the composite graft survival rate at Sec.  512.428(b)(1)(iii) and 
(iv)(A). Since publication, many IOTA participants have asked CMS to 
clarify whether multi-organ transplants are included in both the 
numerator and denominator when calculating the composite graft survival 
rate. Specifically, questions surrounded the current regulation at 
Sec.  512.428(b)(1)(iii)(E), which states that CMS will exclude offers 
to multi-organ candidates (except for kidney/pancreas candidates that 
are also listed for kidney alone) from the numerator. We clarified that 
this exclusion pertains to the offer phase of the transplant process. 
The actual transplant outcomes, when including a kidney, remain within 
the measurement scope. This interpretation ensures standardized 
application of the exclusion criterion while maintaining the measure's 
intended focus on kidney transplant outcomes, regardless of concurrent 
multi-organ status. We also noted that the denominator calculation, as 
finalized in the 2024 Final Rule, does not contain exclusions for 
multi-organ transplants, which allows for comprehensive tracking of all 
kidney transplant outcomes. Since CMS clarified that multi-organ 
transplants are included in the calculation of the composite graft 
survival rate, many IOTA participants have urged CMS to exclude them 
from the metric due to the additional complexity of multi-organ 
transplantation.
    In this proposed rule, we are proposing to update the regulation at 
Sec.  512.428(b)(1)(iii)(E) to exclude multi-organ transplants (except 
for kidney/pancreas transplants) from the numerator. As a result, we 
are also proposing to update the provision at Sec.  
512.428(b)(1)(iv)(A) to read as follows: When calculating the composite 
graft survival rate, CMS only includes single-organ kidney transplants 
and kidney/pancreas transplants for transplant recipients who are 18 
years of age and older at the time of the kidney transplant or kidney/
pancreas transplant in the number of kidney transplants performed by 
the IOTA participant during each PY in the denominator. For purposes of 
the model, we propose at Sec.  512.402 to define ``single-organ kidney 
transplant'' as a procedure in which a kidney alone is surgically 
transplanted from a living or deceased donor. We seek comment on our 
proposed definition of single-organ kidney transplant at proposed Sec.  
512.402.
    We are proposing to exclude multi-organ transplants--procedures in 
which a kidney is surgically transplanted from deceased donor to a 
transplant recipient along with one or more organs transplanted 
simultaneously--except for kidney/pancreas transplants from the 
composite graft survival rate metric in recognition of the increased 
complexity of clinical outcomes associated with these procedures.\44\ 
In acknowledgment that multi-organ transplantation represents a 
distinct clinical scenario with potentially different risk profiles, 
complication rates, and outcomes compared to single-organ kidney 
transplantation, we believe it would be methodologically sound to 
analyze multi-organ transplant recipients separately from single-organ 
kidney transplant and kidney/pancreas transplant recipients. We are 
proposing to include kidney/pancreas transplants because, although 
these procedures are associated with greater surgical complexity and 
higher perioperative risk, clinical evidence demonstrates improved 
recipient survival compared with kidney transplantation alone among 
patients with Type 1 Diabetes Mellitus.\45\ Kidney/pancreas 
transplantation offers a potential cure for both diabetes and kidney 
failure in this population.\46\ Additionally, the inclusion of kidney/
pancreas transplants within the composite graft survival rate metric 
aligns with established SRTR methodology, which includes kidney/
pancreas transplants while excluding other multi-organ transplant 
procedures from their graft survival criteria.\47\ We further note that 
that including kidney/pancreas transplants in the composite graft 
survival rate metric is consistent with the efficiency domain as 
described at Sec.  512.426(b)(1)(iii)(E) where multi-organ kidney 
transplant offers (except for kidney/pancreas candidates that are also 
listed for kidney alone) are excluded from the organ offer acceptance 
rate ratio measure calculation.
---------------------------------------------------------------------------

    \44\ Schold, J.D., & Mohan, S. (2021). A deeper dive into the 
impact of multiple-organ transplant policy on kidney transplant 
candidate prognoses. American Journal of Transplantation, 21(6), 
2004-2006. <a href="https://doi.org/10.1111/ajt.16508">https://doi.org/10.1111/ajt.16508</a>.
    \45\ Ibid.
    \46\ Nagendra, L., Fernandez, C.J., & Pappachan, J.M. (2023). 
Simultaneous pancreas-kidney transplantation for end-stage renal 
failure in type 1 diabetes mellitus: Current perspectives. World 
Journal of Transplantation, 13(5), 208-220. <a href="https://doi.org/10.5500/wjt.v13.i5.208">https://doi.org/10.5500/wjt.v13.i5.208</a>.
    \47\ Technical methods for the Program-Specific reports. (n.d.-
b). <a href="https://www.srtr.org/about-the-data/technical-methods-for-the-program-specific-reports/">https://www.srtr.org/about-the-data/technical-methods-for-the-program-specific-reports/</a>.
---------------------------------------------------------------------------

    We seek comment on our proposals at proposed Sec. Sec.  
512.428(b)(1)(iii)(E) and 512.428(b)(1)(iv)(A) to exclude multi-organ 
transplants except for kidney/pancreas transplants from the numerator 
and denominator when calculating the composite graft survival rate in 
the quality domain.
    We considered retaining the inclusion of multi-organ 
transplantation in the calculation of the composite graft survival rate 
and solely revising the text

[[Page 57609]]

of the regulation for clarification purposes. From 2000 to 2020 
deceased donor kidney transplant volume doubled, while multi-organ 
transplants involving kidneys increased 6-fold during the same 
period.\48\ Including multi-organ transplants in metrics could allow 
for more robust monitoring of multi-organ transplant outcomes and 
provide a more comprehensive assessment of transplant hospital 
capabilities and outcomes across all transplant types, ensuring a fair 
comparison of overall program performance.\49\ However, we chose not to 
propose including multi-organ transplants because it would require 
rigorous analysis considering organ scarcity, dynamic decision-making, 
and heterogeneous practice patterns to develop risk-adjustment 
methodologies to account for multi-organ transplant allocation 
policies.\50\
---------------------------------------------------------------------------

    \48\ Husain, S. A., Hippen, B., Singh, N., Parsons, R. F., 
Bloom, R. D., Anand, P. M., & Lentine, K. L. (2023). Right-Sizing 
multiorgan allocation involving Kidneys. Clinical Journal of the 
American Society of Nephrology, 18(11), 1503-1506. <a href="https://doi.org/10.2215/cjn.0000000000000242">https://doi.org/10.2215/cjn.0000000000000242</a>.
    \49\ Ibid.
    \50\ Schold, J. D., & Mohan, S. (2021). A deeper dive into the 
impact of multiple-organ transplant policy on kidney transplant 
candidate prognoses. American Journal of Transplantation, 21(6), 
2004-2006. <a href="https://doi.org/10.1111/ajt.16508">https://doi.org/10.1111/ajt.16508</a>.
---------------------------------------------------------------------------

    We considered excluding all multi-organ transplants, including 
kidney/pancreas transplants, from the composite graft survival rate due 
to the increased surgical complexity and perioperative 
complications.\51\ However, we chose not to proposed excluding all 
multi-organ transplants because we believe that the improved clinical 
outcomes for kidney/pancreas transplants compared to kidney 
transplantation alone for Type 1 Diabetes Mellitus patients outweighed 
the added surgical complexity and potential perioperative 
complications.\52\ We seek comment on the alternatives considered. We 
also seek comment on whether CMS should include multi-organ transplants 
in the numerator and denominator and which multi-organ transplants 
should CMS include or exclude.
---------------------------------------------------------------------------

    \51\ Callaghan, C. J., Ibrahim, M., Counter, C., Casey, J., 
Friend, P. J., Watson, C. J., & Karydis, N. (2021). Outcomes after 
simultaneous pancreas-kidney transplantation from donation after 
circulatory death donors: A UK registry analysis. American Journal 
of Transplantation, 21(11), 3673-3683. <a href="https://doi.org/10.1111/ajt.16604">https://doi.org/10.1111/ajt.16604</a>.
    \52\ Ibid.
---------------------------------------------------------------------------

(b) Calculation of Points
    In the 2024 Final Rule (89 FR 43518) that established the IOTA 
Model, we acknowledged commenter concerns about the proposed points 
allocation for the composite graft survival rate, arguing that it 
unfairly penalizes transplant hospitals that accept higher-risk 
patients and suggesting modifications including lowering the threshold 
for maximum points from the 80th to 60th percentile for IOTA 
participants (89 FR 96365). In response to comments, we finalized an 
alternate scoring methodology, such that IOTA participants would be 
awarded points based on the national quintiles, as outlined in Table 1, 
such that IOTA participants that perform--
    <bullet> At or above the 80th percentile would earn 20 points;
    <bullet> In the 60th percentile to below the 80th percentile would 
earn 18 points;
    <bullet> In the 40th percentile to below the 60th percentile would 
earn 16 points;
    <bullet> In the 20th to below the 40th percentile would earn 14 
points;
    <bullet> In the 10th to below the 20th percentile would earn 12 
points; and
    <bullet> Below the 10th percentile would receive 10 points for the 
composite graft survival rate.
[GRAPHIC] [TIFF OMITTED] TP11DE25.011

    In addition, we stated that we recognized that for PY 2 and future 
PYs there would be more events and a longer time horizon and plan to 
implement a more robust methodology that could account for both the 
likelihood of graft failure based on the donor and the recipient and 
could account for relative benefits of transplantation over remaining 
on dialysis (89 FR 96365). We direct readers to the 2024 Final Rule for 
a full discussion of this policy, our rationale for this approach, and 
alternatives considered (89 FR 96364 through 96366).
    Upon further review of our methodology, we are proposing to modify 
the composite graft survival rate scoring methodology to allow for a 
more even scoring distribution for IOTA participants. Specifically, we 
propose in Table 1 to paragraph (d) at Sec.  512.428 that points earned 
would be based on the IOTA participants' performance on the composite 
graft survival rate relative to national ranking, inclusive of all 
eligible kidney transplant hospitals, both those selected and not 
selected as IOTA participants, as outlined in Table 2.
    We propose that points continue to be awarded based on national 
quintiles, as outlined in Table 2. We maintain our belief that 
utilizing quintiles aligns with the calculation of the upside and 
downside risk payments in relation to the final performance score, as 
described in 42 CFR 512.430(b), where average performance yields half 
the number of points. The scoring is normalized, meaning an average 
performing IOTA participant earns 10 points out of 20, 50 percent of 
the total possible points. We recognize that there is an upper limit to 
the benefits of quality, and quintiles combine the highest 20 percent 
of performers in a point band.
    In accordance with Sec.  512.428, we propose the following updates 
to the allocation of points for the composite graft survival rate in 
Table 1 to paragraph (d) at Sec.  512.428, as illustrated in Table 2:
    <bullet> IOTA participants in the 80th percentile and above, 20 
points.
    <bullet> IOTA participants in the 60th to below the 80th percentile 
of performers, 15 points.
    <bullet> IOTA participants in the 40th to below the 60th percentile 
of performers, 10 points.

[[Page 57610]]

    <bullet> IOTA participants in the 20th to below the 40th percentile 
of performers, 5 points.
    <bullet> IOTA participants who are below the 20th percentile of 
performers, 0 points.
[GRAPHIC] [TIFF OMITTED] TP11DE25.012

    Utilizing quintiles aligns with the calculation of the upside and 
downside risk payments in relation to the final performance score, as 
described in 42 CFR 512.430(b), where average performance yields half 
the number of points. The scoring is normalized, meaning an average 
performing IOTA participant earns 10 points out of 20, 50 percent of 
the total possible points. We recognize that there is an upper limit to 
the benefits of quality, and quintiles combine the highest 20 percent 
of performers in a point band.
    Additionally, in the 2024 Final Rule (89 FR 96379), we stated that 
we would continue to assess our quality domain methodology and how to 
best balance incentives in the efficiency domain and quality domain and 
address a new or updated policy pursuant to future notice and comment 
rule making. Furthermore, as proposed in section II.B.2.b.(2).(a). of 
this proposed rule, we are proposing to incorporate a risk-adjustment 
methodology to the calculation of the composite graft survival rate 
measure. As such, we believe that the proposed allocation of points, as 
illustrated in Table 2, is necessary to account for the proposed 
composite graft survival rate risk-adjustment methodology, as described 
in section II.B.2.b.(2).(a). of this proposed rule, and best balances 
incentives in the quality domain.
    We considered applying a two-scoring system in which we would 
determine an achievement score and improvement score and award the 
point equivalent to the higher value between the two scores; similar to 
the organ offer acceptance rate ratio scoring methodology as described 
at Sec.  512.426(c). In this considered two-scoring system, the 
achievement score would reflect the proposed scoring approach on the 
composite graft survival rate, as illustrated in Table 2 of this 
section. For improvement scoring on the composite graft survival rate, 
we considered the following methodologies:
    <bullet> In accordance with the organ offer acceptance rate ratio 
improvement scoring methodology at Sec.  512.426(c)(2)(ii).
    <bullet> Improvement relative to national ranking from previous PY.
    <bullet> Improvement over 2 PYs. In this methodology, improvement 
scoring would only be awarded twice (PYs 4 and 6) and would measure 
improvement by comparing PYs 1-2 to PYs 3-4 and PYs 3-4 to PYs 5-6.
    We considered applying a two-scoring system in which we would 
determine an achievement score and improvement score and award the 
point equivalent to the higher value between the two scores because we 
recognize that if an IOTA participant does not do well one PY on the 
composite graft survival rate, as described at Sec.  512.428(b)(1), 
that it may be difficult for it to improve during the model performance 
period. However, we chose not to propose this methodology (two-scoring 
system) because we still had concerns over our ability to measure 
improvement year-over-year due to potentially small numbers. 
Furthermore, given that we are proposing to incorporate a risk-
adjustment methodology, as proposed in section II.B.2(b)(2)(a) of this 
proposed rule, we believe that our proposed scoring approach rewards 
both achievement and improvements and is a more rigorous scoring 
methodology. Although we are not proposing to include this alternative, 
we seek comment on whether a two-scoring system methodology would be 
appropriate for the composite graft survival rate and the best approach 
for measuring improvement.
    We seek comment on our proposed composite graft survival rate 
scoring methodology at proposed Table 1 to Paragraph (d) at Sec.  
512.428 for purposes of assessing quality domain performance for each 
IOTA participant. We also seek comments on alternatives considered. 
Additionally, we seek comment on whether there is a scoring methodology 
on the composite graft survival rate that recognizes IOTA participants 
whose post-transplant outcomes are at an acceptable level and how to 
define an acceptable level (for example, 1 standard deviation of the 
national risk-adjusted rate or some other way).
3. Payment
a. Background
    For the IOTA Model, we proposed and finalized an alternative 
payment model (APM) structure that incorporates both upside and 
downside risk to existing Medicare fee-for-service (FFS) payments for 
kidney transplantations. The IOTA Model will test whether performance-
based payments, including the potential for an upside or downside risk 
payment, to IOTA participants increases access to kidney transplants 
for attributed patients while preserving or enhancing quality of care 
and reducing kidney transplant hospital expenditures.
    In the 2024 Final Rule (89 FR 43518), we finalized provisions 
regarding downside risk payments and other payments as described in 
Sec.  512.430, where, we specified the methodologies for upside risk 
payments, neutral zone, and downside risk payments for IOTA 
participants. For upside risk payments, if the IOTA participant's final 
performance score is 60 points or above, CMS will calculate the IOTA 
participant's upside risk payment by subtracting 60 from the IOTA 
participant's final performance score, dividing the resulting amount by 
40, multiplying the calculated amount by $15,000 and multiplying that 
amount by the total number of Medicare kidney transplants performed by 
the IOTA participant during the relevant PY. For downside risk 
payments, beginning in PY 2, CMS will calculate the downside risk 
payment by subtracting the IOTA participant's final performance score 
from 40, divide that number by 40, multiplying the resulting amount by 
$2,000 and multiplying that amount by the total number of Medicare 
kidney transplants performed by the IOTA participant during the 
relevant PY.

[[Page 57611]]

b. Alternative Payment Design
    In the 2024 Final Rule (89 FR 96383), CMS proposed and finalized 
two-sided performance-based payments for ``Medicare kidney 
transplants,'' defined at Sec.  512.402 as kidney transplants furnished 
to attributed patients whose primary or secondary insurance is Medicare 
FFS, as identified in Medicare FFS claims with MS-DRGs 008, 019, 650, 
651 and 652.
    In our initial proposal in the 2024 Proposed Rule (89 FR 43570), we 
stated that we had considered including beneficiaries with Medicare 
Advantage (MA) as well in the definition of Medicare kidney 
transplants. As stated at 89 FR 96382, we decided to finalize the 
policy as proposed as we did not believe that the additional incentive 
effects from including MA in the calculation for upside and downside 
risk payments were necessary at that point to provide sufficient 
incentive to test the model. We noted our plan to further engage with 
MA plans to think about the incentives in the IOTA Model and those set 
up by MA plans. We also planned to monitor relative enrollment of 
beneficiaries who receive kidney transplants in Medicare FFS as opposed 
to MA to see if further policy changes would be necessary for future 
years of the IOTA Model.
    Since publication of the 2024 Final Rule, CMS has continued to 
assess its position regarding the potential inclusion of beneficiaries 
enrolled in MA within the definition of Medicare kidney transplants for 
several key reasons. This ongoing evaluation reflects CMS's commitment 
to monitoring changes in MA enrollment trends, analyzing potential 
impacts on model incentives and Medicare Trust Fund savings, and 
considering the operational and statutory implications of such an 
inclusion. CMS is soliciting public comment on this issue more broadly, 
on whether to include MA beneficiaries within the IOTA model, as well 
as on the specific considerations and requests for input if CMS were to 
proceed with such an approach.
    We seek comment on whether CMS should include MA transplants in the 
calculation for upside risk payments and downside risk payments. We 
also seek comment on our consideration to update the definition of 
Medicare kidney transplants at Sec.  512.402 to include attributed 
patients with MA, to further the incentive effects of the IOTA Model 
and in recognition of the growth of MA enrollment relative to Medicare 
FFS.
    Per the Announcement of Calendar Year (CY) 2026 Medicare Advantage 
(MA) Capitation Rates and Part C and Part D Payment Policies, Medicare 
FFS enrollment of the total ESRD population enrolled in Medicare is 
currently about 45 percent in 2024 and is projected to drop to 
approximately 40 percent by 2028. This means that updating the 
definition of Medicare kidney transplant would increase the maximum 
potential upside risk payments, per the definition in Sec.  
512.430(b)(1)(iv), for an IOTA participant given that the number of 
Medicare kidney transplants performed would on average also be 
increasing. Under this approach, CMS could decrease the maximum upside 
risk payment from $15,000 to $10,000 per Medicare kidney transplant. 
CMS analyses project that the decreased upside risk payment multiplier 
and increased number of kidney transplants that upside and downside 
risk payments would apply to under such an approach would approximately 
offset each other and approximately have a net zero impact on model 
savings from this combination of provisions. CMS could make this change 
to balance our goals of creating a strong incentive for IOTA 
participants to increase their number of kidney transplants and ensure 
savings for the Medicare Trust Fund. We seek comment on our 
consideration to decrease the maximum upside risk payment from $15,000 
to $10,000 per Medicare kidney transplant should CMS update the 
definition of Medicare kidney transplant to include MA beneficiaries.
    While there may be benefits to including kidney transplants 
furnished to MA beneficiaries in the calculation for the upside risk 
payment and downside risk payment, CMS continues to consider potential 
concerns or disadvantages. One potential issue is whether the payments 
made under such an approach could affect the contracting relationship 
between a Medicare Advantage organization (MAO) and the IOTA 
participant. We seek feedback from both IOTA participants and from MAOs 
about any potential effect that inclusion of beneficiaries with MA in 
the definition of Medicare kidney transplants in the IOTA Model could 
have on their contracting relationships.
    Pursuant to the non-interference clause in section 
1854(a)(6)(B)(iii) of the Act, CMS does not interfere in payment 
arrangements between MA organizations and their contracted providers. 
At the same time, CMS is interested in the potential in achieving 
greater alignment between MA and Medicare FFS payment methodologies.
    Given the factors described in this section, CMS is soliciting 
comments from a broad range of stakeholders and interested parties, 
including MA plans, beneficiary advocates, healthcare providers, and 
industry experts. We are particularly interested in comments on how MA 
could play a role in the IOTA Model. Specifically, we are inviting 
public comment on the following:
    <bullet> What are any innovative transplant-related strategies 
being tested by MAOs?
    <bullet> What are the anticipated effects that implementation of 
this contemplated policy modification would have on the kidney 
transplant strategic initiatives currently under consideration by MAOs?
    <bullet> How does the growth of MA compared to Medicare FFS affect 
participation and incentives in the IOTA Model?
    <bullet> What do MA plans consider as their role in the kidney 
transplant process?
    <bullet> What performance metrics do MA plans consider when 
evaluating kidney transplant hospitals?
    <bullet> What performance metrics are the most important for a 
kidney transplant hospital?
    <bullet> What are kidney transplant hospitals' experiences with 
kidney transplant performance metrics from private insurers and MAOs, 
outside of their experience with the IOTA Model?
    <bullet> How do the IOTA Model performance metrics play a role in 
the relationship between an MA plan and a contracted provider?
    <bullet> If any, what are potential effects that MA inclusion in 
the model could have on a contracting relationship between providers 
and MA plans (for example, negotiation of terms)?
    <bullet> If any, what are potential unintended consequences of MA 
inclusion on utilization management tools employed by MAOs?
    <bullet> Would an MA plan consider implementing similar performance 
metrics to those included in the IOTA Model?
    <bullet> Under what circumstances is it appropriate for CMS to 
consider directly incentivizing a behavior change from a provider 
contracted in an MA plan?
    We extend our sincere appreciation in advance to all commenters, as 
their valuable feedback will serve to inform future CMS policy actions 
in this domain.
c. Performance-Based Payment Method
(1) Determine Final Performance Score Range Category
    In the 2024 Final Rule (89 FR 96384), we finalized using the final 
performance scores to determine the upside risk payment, the downside 
risk payment, and the neutral zone at Sec.  512.430(a), as illustrated 
in Table 3. Additionally, we

[[Page 57612]]

finalized the definitions of downside risk payment, upside risk 
payment, and neutral zone at Sec.  512.402.
[GRAPHIC] [TIFF OMITTED] TP11DE25.013

    We previously finalized for PYs 2 through 6 that an IOTA 
participant would qualify for the neutral zone if their final 
performance scores were between 41 and 59 points (inclusive) at Sec.  
512.430(b)(2)(ii), as illustrated in Table 3. Since publication some 
IOTA participants have expressed confusion about final performance 
scores of 40 points and 60 points. In this proposed rule, we are 
proposing to update this provision to clarify language about final 
performance scores of 40 points and 60 points. Given the final 
performances scores described in Table 3, a score of 40 points results 
in zero downside risk payments and a score of 60 points results in zero 
upside risk payments. As a result, we are proposing to clarify the 
language in the rule to address this point and to further clarify the 
endpoints where an IOTA participant could receive an upside risk 
payment, be in the neutral zone, or receive a downside risk payment.
    We propose at Sec.  512.430(b)(1) to clarify that if in PYs 1-6, 
the IOTA participant's final performance score is above 60 points, the 
IOTA participant qualifies for an upside risk payment. Additionally, we 
propose at Sec.  512.430(b)(2)(ii) to clarify that for PYs 2 through 6, 
if an IOTA participant's final performance is between 40 to 60 points 
(inclusive), the IOTA participant qualifies for the neutral zone. 
Finally, we propose at Sec.  512.430(b)(3) to clarify that if an IOTA 
participant's final performance score is below 40 points in PYs 1 
through 6, the IOTA participant qualifies for a downside risk payment.
    We seek comment on our proposals at proposed Sec.  512.430(b)(1), 
512.430(b)(2)(ii), and 512.430(b)(3)(i) to clarify the appropriate 
final performance score ranges for an IOTA participant to be eligible 
to receive an upside risk payment, be in the neutral zone, or receive a 
downside risk payment.
(2) Downside Risk Payment
    In the 2024 Final Rule (89 FR 96386), we finalized provisions 
regarding downside risk payments and other payments as described in 
Sec.  512.430. Additionally, we finalized the definition of downside 
risk payment and established the methodology for its calculation. Since 
publication, we recognized that this section contains a typographical 
error that should be corrected regarding the deadline for downside risk 
payments and lacks specificity regarding what happens if the IOTA 
participant fails to make the downside risk payment for a given PY.
    Therefore, we propose to update the provision at Sec.  
512.430(d)(6)(ii) to clarify that the IOTA participant must pay the 
downside risk payment to CMS in a single payment within 60 days, rather 
than at least 60 days, after the date on which the demand letter is 
issued. Where the IOTA participant fails to repay CMS in full for all 
monies owed, CMS would invoke all legal means to collect the debt, 
including referral of the remaining debt to the United States 
Department of the Treasury, pursuant to 31 U.S.C. 3711(g).
    We seek comment on our proposal at proposed Sec.  512.430(d)(6)(ii) 
to clarify that full payment of a downside risk payment must be 
received within 60 days after the demand is made and that it will be 
considered delinquent debt if not received within that time period.
    (3) Extreme and Uncontrollable Circumstances
    In the 2024 Final Rule (89 FR 96389), we finalized provisions 
regarding a policy related to Extreme and Uncontrollable Circumstances 
(EUC) at Sec.  512.436. We finalized that for the IOTA Model, CMS would 
apply determinations made under the QPP with respect to whether an 
extreme and uncontrollable circumstance has occurred and the affected 
area during the PY and that CMS has sole discretion to determine the 
period during which an extreme and uncontrollable circumstance occurred 
and the percentage of attributed patients residing in affected areas. 
If CMS determined then that an EUC occurred, CMS could then reduce the 
amount of the IOTA participant's downside risk payment, if applicable, 
prior to recoupment and calculate that reduction based on the 
percentage of total months during the PY affected by the extreme and 
uncontrollable circumstance and the percentage of attributed patients 
who reside in an area affected by the extreme and uncontrollable 
circumstance.
    Since publication of the 2024 Final Rule, CMS has been reviewing 
its policy towards EUC events. The current EUC policy for the IOTA 
Model reflects the policy used for many accountable care organization 
(ACO) type models, including the ACO Realizing Equity, Access, and 
Community Health (ACO REACH) and Kidney Care Choices (KCC) Models. 
However, CMS recognizes that the policies used for the QPP may not be 
appropriate for the IOTA Model, given that the QPP policies may not 
account for broader impacts that an EUC might have on an IOTA 
participant's ability to perform in the model if allocation systems 
were disrupted due to an emergency or if there were disaster conditions 
that could disproportionately affect post-transplant outcomes. The 
current provision only potentially reduces downside payments and does 
not account for any change in the model inputs or reporting period that 
may affect an IOTA participant's performance score if their ability to 
perform on one of more of the measures were disrupted by an EUC event.
    Therefore, we propose to update the provision at Sec.  
512.436(a)(1) to state that CMS may, at its sole discretion, apply 
flexibilities if the IOTA participant is located in an emergency area 
during an emergency period, as those terms are defined in section 
1135(g) of the Act, for which the Secretary has issued a waiver under 
section 1135 of the Act and if the IOTA participant is located in a 
county, parish, or tribal government designated in a major disaster 
declaration under the Stafford Act. Additionally, we propose at Sec.  
512.436(a)(2) that CMS has the sole discretion to determine the time 
period during which payment and reporting

[[Page 57613]]

flexibilities are provided to the IOTA participant. Finally, we propose 
at Sec.  512.436(b) that CMS may, at its sole discretion, adjust the 
direction and the magnitude of the upside or downside risk payments, if 
applicable, prior to recoupment or payment, for the IOTA participant if 
the IOTA participant is participating in the IOTA Model when CMS has 
declared such an emergency period.
    We seek comment on our proposal at proposed Sec.  512.436(a)(1) to 
clarify how CMS will determine if an emergency situation occurs for an 
IOTA participant beginning in PY 2 of the Model. We also seek comment 
about the flexibilities at proposed Sec.  512.436(b) that CMS may 
adjust upside or downside payments to respond to a potential emergency 
faced by an IOTA participant.
4. Other Requirements
a. Transparency Requirements
(1) Publication of Selection Criteria for Kidney Transplant Evaluations 
and Waitlisting
    In the 2024 Final Rule (89 FR 96394) that established the IOTA 
Model, we finalized that IOTA participants must publicly post their 
patient selection waitlist criteria on a website by the end of PY 1 at 
Sec.  512.442(a). Additionally, we discussed commenters' suggestions to 
provide IOTA participants with flexibility in updating waitlist 
selection criteria and balancing accuracy with resource constraints. We 
direct readers to the 2024 Final Rule for a full discussion of this 
policy, a summary of the comments received, and our responses to those 
comments (89 FR 96394 through 96397).
    To advance transparency for individuals seeking transplant waitlist 
access and to improve patient health literacy regarding transplant 
program evaluation processes, we propose to revise Sec.  512.442(a). 
Specifically, we are proposing to revise the paragraph heading at Sec.  
512.442(a) to remove ``transplant patient'' from Publication of 
transplant patient selection criteria and to redesignate the current 
requirement from Sec.  512.442(a) to Sec.  512.442(a)(1). For all 
subsequent PYs, we propose at Sec.  512.442(a)(2) that the IOTA 
participant must review its publicly posted criteria used for 
evaluating and selecting patients for addition to its kidney transplant 
waitlist and ensure that the information on its website is up to date 
by the end of each relevant PY. The proposed modifications aim to 
improve patient health and safety while reducing disparities in access 
to transplant evaluations and seek to strengthen the transparency 
framework within transplant program evaluation processes, thereby 
facilitating improved patient understanding and equitable access to 
transplant services.
    In recognition that transplant hospitals may make changes to its 
patient selection criteria for determining a patient's suitability for 
placement on a waitlist we believe that this proposed provision would 
capture these changes and ensure that the information on its website is 
up to date in future PYs. We also believe this policy would address 
commenters' suggestions and provide flexibility in updating its 
waitlist selection criteria on its website. We seek comment on these 
proposals at proposed Sec.  512.442(a)(1) and (2).
    We alternatively considered requiring IOTA participants to update 
its publicly posted patient selection waitlist criteria to ensure that 
this information on its websites remain current within timeframes of 30 
days, 60 days, or 90 days following any modification. We acknowledge 
that these alternative timeframes would provide more accurate and 
timely information while facilitating informed patient decision-making. 
However, we are proposing that IOTA participants must review and update 
its publicly posted patient selection waitlist criteria by the end of 
each relevant PY to align with current and proposed publication 
requirements for patient selection criteria, as described in section 
II.B.4.a.(1). of this proposed rule, in the IOTA Model. We seek public 
comment on the alternatives considered.
    If a transplant program performs living donor transplants, the 
transplant program's living donor selection criteria must be consistent 
with the general principles of medical ethics. The program must use 
written donor selection criteria to determine the suitability of 
candidates for donation. Transplant programs must also ensure that a 
prospective living donor receives a medical and psychosocial 
evaluation, document in the living donor's medical records the living 
donor's suitability for donation, and document that the living donor 
has given informed consent. We recognize that the current regulations 
in the IOTA Model do not address publicly posting living donor 
selection criteria. As such, for IOTA participants performing living 
donor kidney transplants, we propose that those IOTA participants must 
publicly post on its website its living donor selection criteria for 
evaluating potential living donors for kidney transplant waitlist 
patients by the end of PY 2 at Sec.  512.442(a)(3)(i). For all 
subsequent PYs, we propose at Sec.  512.442(a)(3)(ii) that the IOTA 
participant must review its living donor selection criteria for 
evaluating potential living donors for kidney transplant waitlist 
patients on its website and ensure that the information publicly posted 
on its website is correct by the end of each relevant PY.
    We believe requiring IOTA participants that perform living donor 
kidney transplants to publicly post on their website its living donor 
selection criteria would significantly enhance transparency in the 
kidney transplant system by making living donor selection criteria 
readily accessible to patients, families, and referring physicians, 
allowing them to make more informed decisions about transplant options 
and understand the specific requirements each IOTA participant uses to 
evaluate potential living donors. Additionally, we believe this 
requirement would empower patients by providing them with clear 
information about what criteria their kidney transplant hospital uses 
to assess living donors, enabling patients, families, and referring 
physicians to better prepare potential donors and understand the 
evaluation process, which could ultimately lead to more successful 
living donor kidney transplant outcomes. We seek comment on these 
proposals at proposed Sec.  512.442(a)(3)(i) and (ii). Finally, we 
propose finalizing these requirements only if they are not redundant 
with other Department of Health and Human Services (HHS) guidance.
    We alternatively considered requiring IOTA participants to update 
its publicly posted living donor selection criteria to ensure that this 
information on its websites remains current within timeframes of 30 
days, 60 days, or 90 days following any modification. We recognize that 
this alternative would provide more accurate and timely information 
while facilitating informed patient decision-making processes. However, 
we proposed that IOTA participants must review and update their 
publicly posted living donor selection criteria by the end of each 
relevant PY to align with current and proposed publication requirements 
for patient selection criteria, as described in section II.B.4.a.(1). 
of this proposed rule, in the IOTA Model. We seek public comment on the 
alternatives considered.
    As previously suggested by commenters in the 2024 Final Rule (89 FR 
96396), we considered creating a standardized waitlist selection 
criteria template for IOTA participants to use that would include 
specific details of waitlist selection criteria such as absolute 
contraindications, financial and insurance requirements, and 
psychosocial factors that impact listing decisions. We also considered 
but did

[[Page 57614]]

not propose creating a standardized living donor selection criteria 
template for IOTA participants to use that would be relative or 
absolute contraindications for donating a kidney. While we are not 
proposing to provide standardized waitlist selection criteria or living 
donor selection criteria templates that IOTA participants would be 
required to use, we are seeking public comment regarding whether the 
inclusion of such templates would be preferable and would not impose 
additional administrative burden upon IOTA participants. Additionally, 
beyond the requirements outlined in 42 CFR 482.90, we seek comment on 
what specific requirements or specific detail should be included in 
standardized waitlist selection criteria or living donor selection 
criteria templates.
(2) Publication of IOTA Participant Selection Criteria
    In the Specialty Care Models final rule (85 FR 61114), CMS 
established certain general provisions in 42 CFR part 512 subpart A 
that apply to all Innovation Center models. One such general provision 
pertains to rights in data. Specifically, in the Specialty Care Models 
final rule, we stated that to enable CMS to evaluate the Innovation 
Center models as required by section 1115A(b)(4) of the Act and to 
monitor the Innovation Center models pursuant to Sec.  512.150, in 
Sec.  512.140(a) we would use any data obtained in accordance with 
Sec. Sec.  512.130 and 512.135 to evaluate and monitor the Innovation 
Center models (85 FR 61124). We also stated that, consistent with 
section 1115A(b)(4)(B) of the Act, CMS would disseminate quantitative 
and qualitative results and successful care management techniques, 
including factors associated with performance, to other providers and 
suppliers and to the public. We stated that the data to be disseminated 
would include, but would not be limited to, patient de-identified 
results of patient experience of care and quality of life surveys, as 
well as patient de-identified measure results calculated based upon 
claims, medical records, and other data sources. We finalized these 
policies in 42 CFR 512.140(a).
    Consistent with these provisions, in the 2024 Final Rule (89 FR 
96403) that established the IOTA Model, we finalized our proposals to 
publish results from all PYs of the IOTA Model. Specifically, we stated 
that, for each PY, we intend to identify each IOTA participant for the 
PY and to post performance across the achievement domain, efficiency 
domain, and quality domain for each IOTA participant on the IOTA Model 
website annually, as they become available (89 FR 96403). We maintain 
our belief that this not only meets CMS requirements but also 
demonstrates transparency for the transplant community.
    Adding to these provisions, we propose to publish IOTA participant 
waitlist selection criteria and the proposed living donor selection 
criteria, as described in section II.B.4.a.(1). of this proposed rule, 
on the IOTA Model website. Specifically, for each PY, we intend to 
publish waitlist selection criteria and the proposed living donor 
selection criteria, as described in section II.B.4.a.(1). of this 
proposed rule, for each IOTA participant on the IOTA Model website by 
the end of the second quarter of each subsequent PY. We propose to 
finalize this requirement only if they are not redundant with other HHS 
guidance. We believe that the release of this information on the IOTA 
Model website would inform the public about IOTA participants' 
selection criteria while in the IOTA Model. Furthermore, we believe the 
release of this information on the IOTA Model website would address 
previous suggestions from commenters to provide this information in a 
centralized location (89 FR 96396). Lastly, we note that this would 
supplement, not replace, the publication of selection criteria 
requirements in the IOTA Model.
    We seek comment on our proposal to post this information to the 
IOTA Model website, as well as the information we intend to post and 
the manner and timing of the posting.
(3) Transparency Into Kidney Transplant Organ Offers
    As discussed in the 2024 Final Rule (89 FR 96397), those active on 
a kidney transplant waitlist may receive organ offers at any time. 
However, there is currently no requirement for providers to discuss 
organ offers with their patients. A provider may decline an organ offer 
for any number of reasons; \53\ however, declining without disclosing 
the rationale to the patient may miss an important opportunity for 
shared decision-making.
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    \53\ Reasons for declining include concerns about the quality of 
the donor organ, such as, donor comorbidity, evidence of disease or 
injury, or other clinical factors that could affect long-term graft 
survival. Providers may also decline an offer if the organ is not 
compatible with the candidate's blood type or antibody profile, 
which could increase the risk of rejection. Patient-specific factors 
may also play a role, such as the candidate not being medically 
stable for surgery at the time of the offer, not meeting weight or 
other health requirements, or having unresolved infections or 
comorbidities. In some cases, logistical issues like timing, 
transport of the organ, or operating room availability may 
contribute to a declined offer.
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    After 3 years on the waiting list, approximately 27 percent of 
kidney transplant waitlist patients receive a deceased donor kidney 
transplant (DDKT), while 33 percent remain on the waitlist.\54\ 
Communication with waitlisted patients is limited, typically focusing 
only on discussing eligibility requirements and notifying them when a 
transplant program plans to accept an organ offer.<SUP>55 56</SUP> 
Furthermore, the National Academy of Sciences, Engineering, and 
Medicine (NASEM) released a significant report in 2022 titled 
``Realizing the Promise of Equity in the Organ Transplantation 
System.'' \57\ The report put forth several key recommendations to 
enhance transparency and patient engagement in the organ 
transplantation process. Notably, it called for transplant hospitals to 
increase transparency with patients regarding declined organ offers, 
including providing specific details about the number of declined 
offers and the rationale behind these decisions. Secondly, the report 
advocated for modifications to the OPTN contract, emphasizing the need 
for transplant hospitals to actively involve patients in the decision-
making process when accepting or rejecting organs.
---------------------------------------------------------------------------

    \54\ Lentine, K.L., Smith, J.M., Miller, J.M., Bradbrook, K., 
Larkin, L., Weiss, S., Handarova, D.K., Temple, K., Israni, A.K., & 
Snyder, J.J. (2023). OPTN/SRTR 2021 Annual Data Report: Kidney. 
American journal of transplantation: official journal of the 
American Society of Transplantation and the American Society of 
Transplant Surgeons, 23(2 Suppl 1), S21-S120. <a href="https://doi.org/10.1016/j.ajt.2023.02.004">https://doi.org/10.1016/j.ajt.2023.02.004</a>.
    \55\ Bergeron, M. (2020). Transplant Center Criteria and 
Inequalities Within Transplant Wait Listing Process [Thesis]. 
<a href="https://stars.library.ucf.edu/etd2020/175/">https://stars.library.ucf.edu/etd2020/175/</a>.
    \56\ Rasheed, H.A., Pensler, M., Diaz, S., Roney, E., Barrett, 
M., & Sonnenberg, E.M. (2024). Organ Offer Review Cards: Improving 
Transparency on the Kidney Transplant Waitlist. Clinical 
Transplantation, 38(7). <a href="https://doi.org/10.1111/ctr.15388">https://doi.org/10.1111/ctr.15388</a>.
    \57\ National Academies of Sciences, Engineering, and Medicine. 
(2022a). Realizing the Promise of Equity in the Organ 
Transplantation System (K.W. Kizer, R.A. English, & M. Hackmann, 
Eds.). National Academies Press. <a href="https://doi.org/10.17226/26364">https://doi.org/10.17226/26364</a>.
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    We also note the recent release of two studies related to notifying 
patients on the waiting list about declined organ offer, since we 
issued the 2024 Proposed Rule. One study conducted interviews with 
patients and nephrologists about this issue of organ offer 
transparency.\58\ This study found that among 755 patient respondents 
surveyed, 64 percent expressed a preference to

[[Page 57615]]

receive organ offer reports. Of the total patient respondents, 87 
percent indicated that transplant hospitals should be mandated to 
inform candidates about the organ offers they receive, while 62 percent 
specified that candidates should be notified following each individual 
offer. Additionally, 73 percent of nephrologists reported that they 
believe patients should be provided with offer information. The second 
study, conducted at the University of Michigan in 2022, developed and 
evaluated an innovative Organ Offer Review Card (OORC) designed to 
enhance transparency in kidney transplant waitlist processes.\59\ In 
response to the 2022 NASEM recommendations for increased accountability 
in organ offer decisions, researchers created a prototype tool that 
summarizes patients' organ offers and reasons for decline over a 6-
month period. This study employed a cross-sectional survey design to 
assess patients' perceptions, attitudes, and feedback regarding the 
OORC, while also examining perspectives on shared decision-making for 
organ offers. The survey found that of 60 randomly selected patients, 
43 were reached by phone and 17 (39.5 percent) completed the survey, 
almost all of whom believed it was important to be involved in the 
decision-making process about organ offers and all of them wanted to 
understand why organs were declined on their behalf. The study further 
found that a vast majority of patients believe the information enhanced 
their understanding of the transplant process and believed that seeing 
this information would increase their trust in the transplant hospital. 
While these two studies have limited sample size, they represent a 
growing interest in how to foster organ offer transparency and patient-
centered care.
---------------------------------------------------------------------------

    \58\ Husain, S.A., Rubenstein, J.A., Ramsawak, S., Huml, A.M., 
Yu, M.E., Maclay, L.M., Schold, J.D., & Mohan, S. (2025). Patient 
and Provider Attitudes Towards Patient-Facing Kidney Organ Offer 
Reporting. Kidney International Reports, 10(4), 1122-1130. <a href="https://doi.org/10.1016/j.ekir.b2025.b01.013">https://doi.org/10.1016/j.ekir.b2025.b01.013</a>.
    \59\ Rasheed, H.A., Pensler, M., Diaz, S., Roney, E., Barrett, 
M., & Sonnenberg, E.M. (2024). Organ Offer Review Cards: Improving 
Transparency on the Kidney Transplant Waitlist. Clinical 
Transplantation, 38(7). <a href="https://doi.org/10.1111/ctr.15388">https://doi.org/10.1111/ctr.15388</a>.
---------------------------------------------------------------------------

    As described in the 2024 Final Rule (89 FR 96397), we proposed to 
add requirements to increase transparency for IOTA waitlist patients 
who are Medicare beneficiaries regarding the volume of organ offers 
received on their behalf while on the waitlist. Specifically, we 
proposed that for each month an organ is offered to an IOTA waitlist 
patient who is a Medicare beneficiary, an IOTA participant must inform 
the Medicare beneficiary, on a monthly basis, of the number of times an 
organ is declined on the Medicare beneficiary's behalf and the 
reason(s) for the decline. However, following feedback from public 
comments that this policy would impose a significant administrative 
burden on IOTA participants, we did not finalize this transparency 
requirement to consider alternatives, such as an alternative frequency 
of sharing declined organ offers with the Medicare beneficiary. We also 
stated that we remain invested in evaluating alternative transparency 
opportunities for patients on the waiting list with the transplant 
community to fulfill this important need. We direct readers to the 2024 
Final Rule for more information on the stakeholder comments regarding 
that proposal and our responses to those comments (89 FR 96397 through 
96403).
    Based on the feedback we received, we are proposing an alternative 
approach for the model. Specifically, for PYs 3 through 6 we propose at 
Sec. Sec.  512.442(b) and (b)(1) that IOTA participants would be 
required to notify eligible IOTA waitlist beneficiaries of the number 
of times an organ is declined on the eligible IOTA waitlist 
beneficiary's behalf at least once every 6 months that the eligible 
IOTA waitlist beneficiary is on the IOTA participant's waitlist. For 
purposes of the model, we propose to define ``eligible IOTA waitlist 
beneficiaries'' at Sec.  512.402 as IOTA waitlist patients, as defined 
at Sec.  512.402, who are Medicare beneficiaries and meet all of the 
following criteria:
    <bullet> Are active on the IOTA participant's waitlist; and
    <bullet> Have accrued a minimum of 3 years of waiting time on the 
IOTA participant's waitlist.
    We note that our rationale for this proposal is explained further 
later in this section. We seek comment on our proposed definition of 
eligible IOTA waitlist beneficiaries at proposed Sec.  512.402.
    We are proposing that, beginning in PY 3, IOTA participants would 
be required to provide notification of declined organ offers for 
eligible IOTA waitlist beneficiaries, as defined at proposed Sec.  
512.402, who are on their waitlist every 6 months, starting July 1 of 
PY 3, subject to the following conditions. IOTA participants would only 
have to notify eligible IOTA waitlist beneficiaries with at least 3 
years of accrued waiting time. IOTA participants would have to provide 
this notification every 6 months after that time period. For example, 
if an eligible IOTA waitlist patient has 2 years and 11 months of 
accrued waiting time on July 1 of PY 3, the IOTA participant would not 
need to provide this notification to that eligible IOTA waitlist 
patient because they have not accrued 3 years of waiting time. 
Alternatively, if an eligible IOTA waitlist patient has 3 years and 11 
months of accrued waiting time on July 1 of PY 3, the IOTA participant 
would need to provide this notification to that eligible IOTA waitlist 
patient because they have accrued 3 years of waiting time. This 
proposed timeframe is designed to balance between the operational 
burden for IOTA participants and when eligible IOTA waitlist 
beneficiaries could start getting transplantable offers. To respect 
beneficiary choice, eligible IOTA waitlist beneficiaries would be able 
to opt out of this notification.
    For each 6-month period in which an organ offer is received and 
declined, we propose at Sec.  512.442(b)(1)(i)(A) through (F) that the 
IOTA participant must provide notifications to each eligible IOTA 
waitlist beneficiary, as defined at proposed Sec.  512.402, and include 
all of the following:
    <bullet> How much wait-time the eligible IOTA waitlist beneficiary 
is currently listed with and their percent panel-reactive antibody 
(PRA) \60\ value.
---------------------------------------------------------------------------

    \60\ As defined by the OPTN, the percent PRA value is a measure 
of a patient's level of sensitization to HLA antigens. It is the 
percentage of cells from a panel of blood donors against which a 
potential recipient's serum reacts. The PRA reflects the percentage 
of the general population that a potential recipient makes 
antibodies (is sensitized) against. For example, a patient with a 
PRA of 80 percent will be incompatible with 80 percent of potential 
donors. Kidney patients with a high PRA are given priority on the 
waiting list. The higher the PRA, the more sensitized a patient is 
to the general donor pool, and thus the more difficult it is to find 
a suitable donor. A patient may become sensitized as a result of 
pregnancy, a blood transfusion, or a previous transplant.
---------------------------------------------------------------------------

    <bullet> In each 6-month period, how many match-runs, as defined at 
Sec.  512.402, the eligible IOTA waitlist beneficiary came up on and 
how many donors they received kidney organ offers from;
    <bullet> Unique patient-specific considerations for that eligible 
IOTA waitlist beneficiary for which deceased donor kidneys the IOTA 
participant would consider for that eligible IOTA waitlist beneficiary.
    <bullet> The refusal reason(s) \61\ why offers were declined based 
off the OPTN refusal codes in plain language;
---------------------------------------------------------------------------

    \61\ Refusal reasons, as defined by the OPTN, are number codes 
used on a match run to show the reason an organ was not accepted for 
a potential transplant recipient (PTR) receiving the offer.
---------------------------------------------------------------------------

    <bullet> Of the deceased donor kidney organ offers declined for 
that eligible IOTA waitlist beneficiary how many of those kidneys were 
transplanted in another kidney transplant patient, as defined at Sec.  
512.402; and
    <bullet> Potential avenues to accelerate access to transplant (for 
example,

[[Page 57616]]

exploring living donation, being waitlisted at multiple kidney 
transplant hospitals, reviewing transplant organ offer acceptance 
criteria or ensuring they meet and maintain the patient criteria for 
their chosen kidney transplant hospital(s), such as adhering to weight 
loss recommendations).
    We believe that these proposed requirements would best balance 
transparency for the eligible IOTA waitlist beneficiary and ensure the 
information is as useful as possible for them. We note that we did not 
finalize this provision in the 2024 Final Rule and stated that we were 
very interested in transparency, but due to the many concerns that we 
received, we recognized that monthly notification to Medicare 
beneficiaries regarding volume and reason for organ decline could have 
been very burdensome to IOTA participants and their staff in PY 1 since 
this was a new initiative and there were not current infrastructure or 
database resources to aid in minimizing burden on IOTA participants (89 
FR 96397). We believe though that circumstances have changed relative 
to when we wrote the 2024 Final Rule for a few reasons:
    First, the IOTA Model has already started. The 2024 Final Rule that 
established the IOTA Model was finalized in December 2024 and IOTA 
participants were notified of their participation status. IOTA 
participants have had time to implement their care models. 
Additionally, IOTA participants would have plenty of notice of CMS' 
intent in this area, with approximately 18 months from the release date 
of this proposed rule in Fall 2025 until the start of PY 3 on July 1, 
2027, to implement the necessary processes to implement these proposed 
notification requirements, if finalized.
    Next, we believe that this updated provision that we are proposing 
is responsive to many of the administrative burden concerns that were 
raised by commenters in response to what we originally proposed in the 
2024 Proposed Rule. For example, in this proposed rule we are proposing 
that the transparency into kidney transplant organ offers requirement 
would only apply for eligible IOTA waitlist beneficiaries, as defined 
in section II.B.4.a.(3). of this proposed rule, rather than all IOTA 
waitlist patients who are Medicare beneficiaries, and IOTA participants 
would only be required to notify eligible IOTA waitlist beneficiaries 
every 6 months, rather than monthly.
    Additionally, we have been working with the Health Resources and 
Services Administration (HRSA) with operational assistance to help to 
make sure that this information is easily accessible for IOTA 
participants and in a format that could be easily shared with its 
eligible IOTA waitlist beneficiaries.
    We considered requiring that an IOTA participant begin providing 
notification of declined organ offers 3 years from when a beneficiary 
started dialysis, but did not propose that as we know some 
beneficiaries get onto the waitlist before they start dialysis. We also 
considered proposing 1 or 2 years of waitlist time, as well as 4 or 5 
years, but decided to propose 3 years as a way to balance when it would 
be appropriate for eligible IOTA waitlist beneficiaries to start being 
informed of their offers. We seek comment on the alternative 
considered.
    We considered proposing to require IOTA participants to provide 
this notification to eligible IOTA waitlist beneficiaries once they 
join the list or with just 1 year or 2 years of waiting list time but 
decided to propose 3 years to balance informing these patients with the 
workload for IOTA participants. We also considered proposing other 
timeframes for potentially notifying eligible IOTA waitlist 
beneficiaries about kidney transplant organ offers including monthly, 
quarterly, or annually, but proposed every 6 months to align with the 
model's review of acceptance criteria requirement at Sec.  512.442(c) 
and the proposed change in waitlist status requirement, as described in 
section II.B.4.a.(5). of this proposed rule.
    Subsequently, we considered a variation of organ offer 
notifications, where every 6 months the IOTA participant would be 
required to also provide the total number of kidney transplant organ 
offers the IOTA participant received and accepted in the relevant 6-
month period in addition to the kidney transplant organ offers for the 
individual eligible IOTA waitlist beneficiary. For example, a 
notification in January would include the number of received and 
accepted kidney transplant offers by the IOTA participant from July 1 
to December 31, alongside the number of kidney transplant organ offers 
that the individual eligible IOTA waitlist beneficiary received during 
that same time frame. We believe that providing total kidneys accepted 
by an IOTA participant would help provide a comparison for when 
eligible IOTA waitlist beneficiaries receive organ offer notifications 
every 6 months. In recognition of the additional reporting complexity 
this variation would introduce for IOTA participants, we did not 
propose this alternative considered.
    We considered limiting this proposed requirement exclusively to 
kidney transplant organ offers that were ultimately transplanted; 
however, we determined that the requirement to inform eligible IOTA 
waitlist beneficiaries of the disposition of each kidney transplant 
organ offer would accomplish the same objectives while providing more 
comprehensive information to the eligible IOTA waitlist beneficiary. We 
also considered not requiring the sharing of offers further up in the 
match run, as defined at Sec.  512.402, at spot 100 or higher to align 
with the SRTR definition of hard-to-place organ or spot 150, but wanted 
to err on the side of providing greater transparency to eligible IOTA 
waitlist beneficiaries. We further considered excluding multi-organ 
offers from this provision; however, we did not propose such exclusion 
because we wanted to ensure that eligible IOTA waitlist beneficiaries 
would receive a more complete perspective regarding their care.
    We considered requiring other explanations for why each kidney 
transplant organ offer was declined, in order to provide additional 
specificity where appropriate but decided to propose OPTN refusal codes 
in order to provide a standardized approach for IOTA participants using 
a format they are already familiar with. We also considered requiring 
cumulative information of organ offers declined since the eligible IOTA 
waitlist beneficiary was added to the IOTA participant's waitlist but 
were unsure if that would provide additional useful information for 
these beneficiaries.
    Lastly, we considered but did not propose creating a standardized 
notification template for IOTA participants to use that would include 
the information specified at proposed Sec.  512.442(b)(1)(i)(A) through 
(F). We think that requiring IOTA participants to use a CMS-provided 
standardized template for these notification requirements could be 
beneficial because it would ensure uniform implementation across all 
IOTA participants, eliminating variability in how critical patient-
specific information is communicated and significantly reducing the 
administrative burden on individual IOTA participants by providing 
ready-to-use formats rather than requiring each IOTA participant to 
develop custom systems. Additionally, a standardized template would 
enhance beneficiary understanding by presenting complex medical 
information in a consistent, accessible format across all IOTA 
participants, while also facilitating more efficient CMS oversight

[[Page 57617]]

and enabling better aggregation of beneficiary communication data for 
program evaluation and quality improvement initiatives. We also 
recognize that requiring IOTA participants to use a CMS-provided 
notification template presents certain considerations that merit 
evaluation. While standardization offers benefits, we recognize that it 
may present challenges in addressing diverse patient populations, 
varying literacy levels, and unique clinical circumstances that could 
benefit from tailored communication approaches. Furthermore, a 
standardized notification template may need to be designed with 
sufficient flexibility to accommodate the different operational 
capabilities, existing communication systems, and established 
beneficiary relationships that individual IOTA participants have 
developed to avoid potential implementation challenges or reduced 
effectiveness in patient communication. While we are not proposing to 
provide a standardized notification template that IOTA participants 
would be required to use, we are seeking public comment regarding 
whether the inclusion of such templates would be preferable and would 
not impose additional administrative burden upon IOTA participants. 
Additionally, beyond the proposed requirements, we seek comment on what 
specific requirements or specific details should be included in or 
excluded from such a notification template.
    To communicate with the eligible IOTA waitlist beneficiary 
effectively, we are proposing at Sec.  512.442(b)(2) that the IOTA 
participant must provide this notification via patient visit, email, 
electronically, or mail on an individual basis, unless the eligible 
IOTA waitlist beneficiary opts out of this notification. We propose at 
Sec.  512.442(b)(2)(i) IOTA participants must give eligible IOTA 
waitlist beneficiaries the opportunity to opt out of receiving this 
notification. We propose at Sec.  512.442(b)(2)(ii) that if an eligible 
IOTA waitlist beneficiary opts out of receiving this notification, the 
IOTA participant would be required to do the following:
    <bullet> Record in the eligible IOTA waitlist beneficiary's medical 
record all of the following:
    ++ The date on which this notification was declined.
    ++ The method by which this notification was declined.
    <bullet> Offer to provide this notification once every 6 months at 
which time the eligible IOTA waitlist beneficiary would have the 
opportunity to opt out of receiving this notification again.
    We note that our rationale for this proposal is explained further 
later in the section.
    We also propose at Sec.  512.442(b)(3)(i) through (iii) that the 
IOTA participant must record in the eligible IOTA waitlist 
beneficiary's medical record--
    <bullet> That the eligible IOTA waitlist beneficiary received the 
notification specified in proposed Sec.  512.442(b)(1);
    <bullet> The method by which the notification was delivered; and
    <bullet> The date by which the notification was delivered.
    Additionally, we are proposing at Sec.  512.442(b)(4) that the 
information at proposed Sec.  512.442(b)(1) must be provided with the 
eligible IOTA waitlist beneficiary's nephrologist or nephrology 
professional, to provide the opportunity for questions and 
clarification of information.
    We alternatively considered proposing that the IOTA participant 
must record in the eligible IOTA waitlist beneficiary's medical 
record--
    <bullet> That the eligible IOTA waitlist beneficiary was sent the 
notification specified in proposed Sec.  512.442(b)(1);
    <bullet> The method by which the notification was sent; and
    <bullet> The date by which the notification was sent.
    In this alternative considered, requiring IOTA participants to 
document when a notification was sent rather than when it was delivered 
recognizes the practical challenges of verifying receipt while still 
ensuring accountability. The IOTA participant would fulfill its 
obligation to communicate the required information once a notification 
was sent, whether by mail, email, or electronically. However, we chose 
not to propose this alternative because we believe recording only when 
a notification was sent does not confirm that the information reached 
the eligible IOTA waitlist beneficiary. We also believe that requiring 
IOTA participants to document delivery of this notification creates a 
more accurate medical record, allowing IOTA participants to know with 
confidence what information eligible IOTA waitlist beneficiaries have 
in hand when engaging in follow-up discussions or counseling. 
Furthermore, documenting delivery supports transparency and 
accountability by demonstrating that IOTA participants are not only 
generating notices, but also ensuring they arrive, reducing the risk 
that eligible IOTA waitlist beneficiaries unknowingly miss out on 
information necessary for shared decision-making. Ultimately, focusing 
on when it was delivered rather than was sent better serves the purpose 
of the notification requirement: to keep eligible IOTA waitlist 
beneficiaries informed and actively engaged in their path to kidney 
transplantation.
    We seek comment on our proposals to provide transparency into 
kidney transplant organ offers at proposed Sec.  512.442(b). We also 
seek comment on the alternatives considered.
(4) Review of Acceptance Criteria
    As finalized in the 2024 Final Rule (89 FR 96402), IOTA 
participants will be required to review transplant organ offer 
acceptance criteria with their IOTA waitlist patients who are Medicare 
beneficiaries at least once every 6 months that the Medicare 
beneficiary is on their waitlist, unless the Medicare beneficiary opts 
out of this review. Under this provision, the IOTA participant must 
conduct this review via patient visit, phone, email or mail on an 
individual basis, unless the Medicare beneficiary declines this review. 
In the 2024 Final Rule, we stated, in response to comments we received, 
that we recognized that explaining organ offer filters with waitlisted 
patients might not promote the same outcome as reviewing organ offer 
acceptance criteria (89 FR 96398). As such, we finalized the 
transparency requirements at Sec.  512.442(c) with minor technical 
edits. Specifically, we added ``organ offer'' to transplant acceptance 
criteria that must be disclosed and removed all references to ``organ 
offer filter'' from the provision at Sec.  512.442(c). Additionally, at 
Sec.  512.442(c) we replaced ``selection criteria'' to now say 
``acceptance criteria''. We stated that these changes were made in 
order to clarify the specific provisions regarding the review of 
transplant organ offer acceptance criteria.
    Since publication of the 2024 Final Rule, IOTA participants have 
requested that CMS provide clarification on what acceptance criteria 
information should be reviewed. Therefore, in this proposed rule, we 
aim to clarify at Sec.  512.442(c) that review of acceptance criteria 
pertains to individual patient transplant organ offer acceptance 
criteria and not organ offer filters or kidney transplant hospital 
level acceptance criteria. For purposes of the model, we propose at 
Sec.  512.402 to define ``transplant organ offer acceptance criteria'' 
as individualized patient acceptance parameters that kidney waitlist 
patients, as defined at Sec.  512.402, may elect regarding the 
categories of organ offers they are prepared to accept for 
transplantation. We seek comment on our proposal at proposed Sec.  
512.442(c) to clarify the meaning of transplant organ offer acceptance 
criteria. We also seek comment on the proposed definition for

[[Page 57618]]

transplant organ offer acceptance criteria at proposed Sec.  512.402.
    As described earlier in this section, in the 2024 Final Rule we 
finalized at Sec.  512.442(c)(1) that IOTA participants must conduct 
the review of acceptance criteria via patient visit, phone, email or 
mail on an individual basis, unless the Medicare beneficiary declines 
this review. Additionally, in response to comments we received we 
stated at 89 FR 96399 that we would provide further sub-regulatory 
guidance on how IOTA waitlist patients who are Medicare beneficiaries 
can choose to decline the review of their transplant organ offer 
acceptance criteria. Since publication, we provided sub-regulatory 
guidance to IOTA participants in the IOTA Model Newsletter on how IOTA 
waitlist patients who are Medicare beneficiaries can opt out of this 
review. However, upon further review of the sub-regulatory guidance we 
provided to IOTA participants, we realized there was a need to clarify 
this guidance and account for this requirement when CMS conducts 
monitoring activities in the IOTA Model.
    As such, we propose at Sec.  512.442(c)(1)(i) that prior to 
reviewing transplant organ offer acceptance criteria, as defined at 
proposed Sec.  512.402, with IOTA waitlist patients who are Medicare 
beneficiaries, IOTA participants must give these beneficiaries an 
opportunity to decline this review. We propose at Sec.  
512.442(c)(1)(ii) that if the IOTA waitlist patient who is a Medicare 
beneficiary declines this review, the IOTA participant must record in 
the IOTA waitlist patient who is a Medicare beneficiary's medical 
record all of the following:
    <bullet> The date on which this review was declined; and
    <bullet> The method by which this review was declined.
    We also propose that if an IOTA waitlist patient who is a Medicare 
beneficiary declines this review, the IOTA participant would then be 
required to offer the IOTA waitlist patient who is a Medicare 
beneficiary the opportunity to review transplant organ offer acceptance 
criteria once every 6 months at which time the IOTA waitlist patient 
who is a Medicare beneficiary would have the opportunity to decline 
this review again. We seek comment on these proposed requirements at 
proposed Sec.  512.442(c)(1)(i) and (ii).
    Lastly, to facilitate compliance monitoring, we propose at Sec.  
512.442(c)(2)(i) through (iii) that the IOTA participant must record in 
the IOTA waitlist patient who is a Medicare beneficiary's medical 
record all of the following:
    <bullet> The information specified at Sec.  512.442(c) was reviewed 
with the IOTA waitlist patient who is a Medicare beneficiary;
    <bullet> The date on which this review took place; and
    <bullet> The method by which this review was delivered.
    We seek comment on these proposed documentation requirements at 
proposed Sec.  512.442(c)(2)(i) through (iii).
(5) Change in Waitlist Status
    Transplant hospitals are currently required to promptly notify 
patients awaiting transplantation of any program-related circumstances 
that could affect their ability to receive a transplant (see 42 CFR 
482.102(c)). These regulations mandate that transplant hospitals must 
inform patients of factors such as the availability of transplant 
surgeons and changes in the hospital's operational status. Transplant 
hospitals must also notify patients of any modifications to their 
Medicare certification status, whether due to voluntary program 
inactivation or termination. These notification requirements serve as a 
crucial mechanism to ensure transparency and protect patient interests 
throughout the transplant waiting period.
    Patients on the transplant waiting list are designated as either 
``active'' or ``inactive''. Individuals with active status are prepared 
and eligible to be matched with available organs, whereas those with 
inactive status are not yet ready to, nor can they, receive organ 
offers. There are over 90,000 people on the waiting list for a kidney 
transplant, but nearly half (49 percent) of these individuals on the 
waiting list are listed as ``inactive'' as of 2025, and unable to 
receive a kidney transplant.\62\ While awaiting organ transplantation, 
kidney transplant waitlist patients' status on the waiting list may 
change between active and inactive multiple times before ultimately 
receiving a successful transplant. The decision to place a kidney 
transplant waitlist patient on inactive status can arise from various 
factors, including hospital admission for vascular access issues, 
suspected lesions identified during preoperative screening, or poor 
compliance with dialysis treatments.<SUP>63</SUP> <SUP>64</SUP> 
<SUP>65</SUP> <SUP>66</SUP> <SUP>67</SUP> Any of these concerns may 
prompt a temporary inactivation until the problem is resolved, allowing 
for the kidney transplant waitlist patient's reactivation. Barriers to 
maintaining active status are often multifactorial but frequently 
modifiable, encompassing symptoms such as fatigue, depression, stress, 
pain, loss of physical function, social isolation, and decreased health 
literacy.<SUP>68</SUP> <SUP>69</SUP> Inactive status thus indicates a 
kidney transplant waitlist patient's ineligibility to be considered for 
organ offers at a given point in time, for many different reasons such 
as temporarily too sick, temporarily too well, candidate work-up 
incomplete, etc.<SUP>70</SUP> <SUP>71</SUP> <SUP>72</SUP> <SUP>73</SUP>
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    \62\ Hart, A., Smith, J.M., Skeans, M.A., Gustafson, S.K., Wilk, 
A.R., Castro, S., Robinson, A., Wainright, J.L., Snyder, J.J., 
Kasiske, B.L., & Israni, A.K. (2019). OPTN/SRTR 2017 Annual Data 
Report: Kidney. American Journal of Transplantation, 19, 19-123. 
<a href="https://doi.org/10.1111/ajt.15274">https://doi.org/10.1111/ajt.15274</a>; The data was retrieved directly 
from the OPTN website (<a href="https://optn.transplant.hrsa.gov/data/view-data-reports/national-data/#">https://optn.transplant.hrsa.gov/data/view-data-reports/national-data/#</a>) on April 3, 2025, with the following 
filters: Category (Waiting List), Count (Candidates), Organ by 
Status.
    \63\ Huang, E., Shye, M., Elashoff, D., Mehrnia, A., & 
Bunnapradist, S. (2014). Incidence of Conversion to Active Waitlist 
Status Among Temporarily Inactive Obese Renal Transplant Candidates. 
Transplantation, 98(2), 177-186. <a href="https://doi.org/10.1097/tp.0000000000000037">https://doi.org/10.1097/tp.0000000000000037</a>.
    \64\ Hladek, M., Curriero, S., Xue, Q.-L., Crews, D., DeMarco, 
M.M., Wilson, D., Brennan, D., & Szanton, S. (2024). CAPABLE 
TRANSPLANT: ADAPTATION OF CAPABLE FOR USE WITH OLDER ADULTS WITH 
INACTIVE STATUS AWAITING KIDNEY TRANSPLANT. Innovation in Aging, 
8(Supplement_1), 181-181. <a href="https://doi.org/10.1093/geroni/igae098.0585">https://doi.org/10.1093/geroni/igae098.0585</a>.
    \65\ Shafi, S., Zimmerman, B., & Kalil, R. (2012). Temporary 
Inactive Status on Renal Transplant Waiting List: Causes, Risk 
Factors, and Outcomes. Transplantation Proceedings, 44(5), 1236-
1240. <a href="https://doi.org/10.1016/j.transproceed.2012.01.126">https://doi.org/10.1016/j.transproceed.2012.01.126</a>.
    \66\ Tong, A., Hanson, C.S., Chapman, J.R., Halleck, F., Budde, 
K., Josephson, M.A., & Craig, J.C. (2015). ``Suspended in a 
paradox''-patient attitudes to wait-listing for kidney 
transplantation: systematic review and thematic synthesis of 
qualitative studies. Transplant International, 28(7), 771-787. 
<a href="https://doi.org/10.1111/tri.12575">https://doi.org/10.1111/tri.12575</a>.
    \67\ King, K.L., Husain, S.A., Schold, J.D., Patzer, R.E., 
Reese, P.P., Jin, Z., Ratner, L.E., Cohen, D.J., Pastan, S.O., & 
Mohan, S. (2020). Major Variation across Local Transplant Centers in 
Probability of Kidney Transplant for Wait-Listed Patients. Journal 
of the American Society of Nephrology:JASN, 31(12), 2900-2911. 
<a href="https://doi.org/10.1681/ASN.2020030335">https://doi.org/10.1681/ASN.2020030335</a>.
    \68\ Shafi, S., Zimmerman, B., & Kalil, R. (2012). Temporary 
Inactive Status on Renal Transplant Waiting List: Causes, Risk 
Factors, and Outcomes. Transplantation Proceedings, 44(5), 1236-
1240. <a href="https://doi.org/10.1016/j.transproceed.2012.01.126">https://doi.org/10.1016/j.transproceed.2012.01.126</a>.
    \69\ Hladek, M., Curriero, S., Xue, Q.-L., Crews, D., DeMarco, 
M.M., Wilson, D., Brennan, D., & Szanton, S. (2024). CAPABLE 
TRANSPLANT: ADAPTATION OF CAPABLE FOR USE WITH OLDER ADULTS WITH 
INACTIVE STATUS AWAITING KIDNEY TRANSPLANT. Innovation in Aging, 
8(Supplement_1), 181-181. <a href="https://doi.org/10.1093/geroni/igae098.0585">https://doi.org/10.1093/geroni/igae098.0585</a>.
    \70\ Norman, S.P., Kommareddi, M., & Luan, F.L. (2013). 
Inactivity on the kidney transplant wait-list is associated with 
inferior pre- and post-transplant outcomes. Clinical 
Transplantation, 27(4), E435-E441. <a href="https://doi.org/10.1111/ctr.12173">https://doi.org/10.1111/ctr.12173</a>.
    \71\ Hughes, A., Malhotra, D., Brennan, D., Seldon, L., 
Carberry, H., Morrison, M., & Hladek, M. (2025). Waitlist management 
for inactive status kidney transplant patients: a scoping review. 
Annals of Medicine & Surgery, 87(4), 2204-2211. <a href="https://doi.org/10.1097/ms9.0000000000003137">https://doi.org/10.1097/ms9.0000000000003137</a>.
    \72\ Kataria, A., Gowda, M., Lamphron, B.P., Jalal, K., Venuto, 
R.C., & Gundroo, A.A. (2019c). The impact of systematic review of 
status 7 patients on the kidney transplant waitlist. BMC Nephrology, 
20(1). <a href="https://doi.org/10.1186/s12882-019-1362-6">https://doi.org/10.1186/s12882-019-1362-6</a>.
    \73\ OPTN. (2025). Require Patient Notification for Waitlist 
Status Changes--OPTN. <a href="http://Hrsa.gov">Hrsa.gov</a>. <a href="https://optn.transplant.hrsa.gov/policies-bylaws/public-comment/require-patient-notification-for-waitlist-status-changes/?j=1275952&sfmc_sub=402742420&l=7077_HTML&u=77544833&mid=100001876&jb=2001">https://optn.transplant.hrsa.gov/policies-bylaws/public-comment/require-patient-notification-for-waitlist-status-changes/?j=1275952&sfmc_sub=402742420&l=7077_HTML&u=77544833&mid=100001876&jb=2001</a>.

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[[Page 57619]]

    Numerous research studies have demonstrated that kidney transplant 
waitlist patients frequently experience confusion and knowledge 
deficits regarding the transplant evaluation and listing 
process.<SUP>74</SUP> <SUP>75</SUP> <SUP>76</SUP> <SUP>77</SUP> 
<SUP>78</SUP> <SUP>79</SUP> <SUP>80</SUP> <SUP>81</SUP> These knowledge 
gaps often contribute to delays in testing and aborted medical 
evaluations. Kidney transplant waitlist patients have reported a lack 
of clarity about their status in the listing process, 
<SUP>82 83 84 85</SUP> a belief that they are already on the waiting 
list, <SUP>86</SUP> <SUP>87</SUP> <SUP>88</SUP> unawareness that tests 
must be repeated, <SUP>89</SUP> <SUP>90</SUP> and misunderstanding 
about being placed on inactive status on the waiting list. 
<SUP>91</SUP> <SUP>92</SUP> In addition to difficulties navigating the 
healthcare system, these knowledge deficits can lead to negative 
perceptions of the transplant process and diminish kidney transplant 
waitlist patient motivation to complete the required testing. 
Literature also suggests that kidney transplant waitlist patients who 
remain in an inactive status for extended periods are less likely to 
receive a kidney transplant, which is associated with increased 
waitlist mortality.<SUP>93</SUP> <SUP>94</SUP> <SUP>95</SUP> 
<SUP>96</SUP> <SUP>97</SUP> <SUP>98</SUP>
---------------------------------------------------------------------------

    \74\ Kayler, L.K., Dolph, B., Ranahan, M., Keller, M., Cadzow, 
R., & Feeley, T.H. (2021). Kidney Transplant Evaluation and Listing: 
Development and Preliminary Evaluation of Multimedia Education for 
Patients. Annals of transplantation, 26, e929839. <a href="https://doi.org/10.12659/AOT.929839">https://doi.org/10.12659/AOT.929839</a>.
    \75\ Kazley, A.S., Hund, J.J., Simpson, K.N., Chavin, K., & 
Baliga, P. (2015). Health literacy and kidney transplant outcomes. 
Progress in transplantation (Aliso Viejo, Calif.), 25(1), 85-90. 
<a href="https://doi.org/10.7182/pit2015463">https://doi.org/10.7182/pit2015463</a>.
    \76\ Browne, T., Amamoo, A., Patzer, R.E., Krisher, J., Well, 
H., Gander, J., & Pastan, S.O. (2016). Everybody needs a cheerleader 
to get a kidney transplant: a qualitative study of the patient 
barriers and facilitators to kidney transplantation in the 
Southeastern United States. BMC nephrology, 17(1), 108. <a href="https://doi.org/10.1186/s12882-016-0326-3">https://doi.org/10.1186/s12882-016-0326-3</a>.
    \77\ Kazley, A.S., Simpson, K.N., Chavin, K.D., & Baliga, P. 
(2012). Barriers facing patients referred for kidney transplant 
cause loss to follow-up. Kidney international, 82(9), 1018-1023. 
<a href="https://doi.org/10.1038/ki.2012.255">https://doi.org/10.1038/ki.2012.255</a>.
    \78\ Patzer, R.E., Perryman, J.P., Pastan, S., Amaral, S., 
Gazmararian, J.A., Klein, M., Kutner, N., & McClellan, W.M. (2012). 
Impact of a patient education program on disparities in kidney 
transplant evaluation. Clinical journal of the American Society of 
Nephrology:CJASN, 7(4), 648-655. <a href="https://doi.org/10.2215/CJN.10071011">https://doi.org/10.2215/CJN.10071011</a>.
    \79\ Chisholm-Burns, M.A., Spivey, C.A., & Pickett, L.R. (2018). 
Health literacy in solid-organ transplantation: a model to improve 
understanding. Patient Preference and Adherence, 12, 2325-2338. 
<a href="https://doi.org/10.2147/PPA.S183092">https://doi.org/10.2147/PPA.S183092</a>.
    \80\ Park, C., Jones, M.-M., Kaplan, S., Koller, F.L., Wilder, 
J.M., Boulware, L.E., & McElroy, L.M. (2022). A scoping review of 
inequities in access to organ transplant in the United States. 
International Journal for Equity in Health, 21(1). <a href="https://doi.org/10.1186/s12939-021-01616-x">https://doi.org/10.1186/s12939-021-01616-x</a>.
    \81\ Khalili, M., Cardinal, H., Ballesteros, F., & Fortin, M. 
(2022). Kidney transplant candidates' and recipients' perspectives 
on the decision[hyphen]making process to accept or refuse a deceased 
donor kidney offer: Trust and graft survival matter. Clinical 
Transplantation, 36(5). <a href="https://doi.org/10.1111/ctr.14604">https://doi.org/10.1111/ctr.14604</a>.
    \82\ Kazley, A.S., Simpson, K.N., Chavin, K.D., & Baliga, P. 
(2012). Barriers facing patients referred for kidney transplant 
cause loss to follow-up. Kidney international, 82(9), 1018-1023. 
<a href="https://doi.org/10.1038/ki.2012.255">https://doi.org/10.1038/ki.2012.255</a>.
    \83\ Kayler, L.K., Dolph, B., Ranahan, M., Keller, M., Cadzow, 
R., & Feeley, T.H. (2021). Kidney Transplant Evaluation and Listing: 
Development and Preliminary Evaluation of Multimedia Education for 
Patients. Annals of transplantation, 26, e929839. <a href="https://doi.org/10.12659/AOT.929839">https://doi.org/10.12659/AOT.929839</a>.
    \84\ Khalili, M., Cardinal, H., Ballesteros, F., & Fortin, M. 
(2022). Kidney transplant candidates' and recipients' perspectives 
on the decision-making process to accept or refuse a deceased donor 
kidney offer: Trust and graft survival matter. Clinical 
Transplantation, 36(5). <a href="https://doi.org/10.1111/ctr.14604">https://doi.org/10.1111/ctr.14604</a>.
    \85\ Bergeron, M. (2020). Transplant Center Criteria and 
Inequalities Within Transplant Wait Listing Process [Thesis]. 
<a href="https://stars.library.ucf.edu/etd2020/175/">https://stars.library.ucf.edu/etd2020/175/</a>.
    \86\ Klassen, A.C., Hall, A.G., Saksvig, B., Curbow, B., & 
Klassen, D.K. (2002). Relationship between patients' perceptions of 
disadvantage and discrimination and listing for kidney 
transplantation. American journal of public health, 92(5), 811-817. 
<a href="https://doi.org/10.2105/ajph.92.5.811">https://doi.org/10.2105/ajph.92.5.811</a>.
    \87\ Gillespie, A., Hammer, H., Lee, J., Nnewihe, C., Gordon, 
J., & Silva, P. (2011). Lack of listing status awareness: results of 
a single-center survey of hemodialysis patients. American journal of 
transplantation:official journal of the American Society of 
Transplantation and the American Society of Transplant Surgeons, 
11(7), 1522-1526. <a href="https://doi.org/10.1111/j.1600-6143.2011.03524x">https://doi.org/10.1111/j.1600-6143.2011.03524x</a>.
    \88\ Bergeron, M. (2020). Transplant Center Criteria and 
Inequalities Within Transplant Wait Listing Process [Thesis]. 
<a href="https://stars.library.ucf.edu/etd2020/175/">https://stars.library.ucf.edu/etd2020/175/</a>.
    \89\ Trivedi, P., Rosaasen, N., & Mansell, H. (2016). The 
Health-Care Provider's Perspective of Education Before Kidney 
Transplantation. Progress in transplantation (Aliso Viejo, Calif.), 
26(4), 322-327. <a href="https://doi.org/10.1177/1526924816664081">https://doi.org/10.1177/1526924816664081</a>.
    \90\ Bergeron, M. (2020). Transplant Center Criteria and 
Inequalities Within Transplant Wait Listing Process [Thesis]. 
<a href="https://stars.library.ucf.edu/etd2020/175/">https://stars.library.ucf.edu/etd2020/175/</a>.
    \91\ Crenesse-Cozien, N., Dolph, B., Said, M., Feeley, T.H., & 
Kayler, L.K. (2019). Kidney Transplant Evaluation: Inferences from 
Qualitative Interviews with African American Patients and their 
Providers. Journal of racial and ethnic health disparities, 6(5), 
917-925. <a href="https://doi.org/10.1007/s40615-019-00592-x">https://doi.org/10.1007/s40615-019-00592-x</a>.
    \92\ Bergeron, M. (2020). Transplant Center Criteria and 
Inequalities Within Transplant Wait Listing Process [Thesis]. 
<a href="https://stars.library.ucf.edu/etd2020/175/">https://stars.library.ucf.edu/etd2020/175/</a>.
    \93\ Hughes, A., Malhotra, D., Brennan, D., Seldon, L., 
Carberry, H., Morrison, M., & Hladek, M. (2025). Waitlist management 
for inactive status kidney transplant patients: a scoping review. 
Annals of Medicine & Surgery, 87(4), 2204-2211. <a href="https://doi.org/10.1097/ms9.0000000000003137">https://doi.org/10.1097/ms9.0000000000003137</a>.
    \94\ King, K.L., Husain, S.A., Schold, J.D., Patzer, R.E., 
Reese, P.P., Jin, Z., Ratner, L.E., Cohen, D.J., Pastan, S.O., & 
Mohan, S. (2020). Major Variation across Local Transplant Centers in 
Probability of Kidney Transplant for Wait-Listed Patients. Journal 
of the American Society of Nephrology, 31(12), 2900-2911. <a href="https://doi.org/10.1681/ASN.2020030335">https://doi.org/10.1681/ASN.2020030335</a>.
    \95\ Grams, M.E., Massie, A.B., Schold, J.D., Chen, B.P., & 
Segev, D.L. (2013). Trends in the Inactive Kidney Transplant 
Waitlist and Implications for Candidate Survival. American Journal 
of Transplantation, 13(4), 1012-1018. <a href="https://doi.org/10.1111/ajt.12143">https://doi.org/10.1111/ajt.12143</a>.
    \96\ Stewart, D., Mupfudze, T., & Klassen, D. (2023b). Does 
anybody really know what (the kidney median waiting) time is? 
American Journal of Transplantation: Official Journal of the 
American Society of Transplantation and the American Society of 
Transplant Surgeons, 23(2), 223-231. <a href="https://doi.org/10.1016/j.ajt.2022.12.005">https://doi.org/10.1016/j.ajt.2022.12.005</a>.
    \97\ Kulkarni, S., Hall, I., Formica, R., Thiessen, C., Stewart, 
D., Gan, G., Greene, E., & Deng, Y. (2017). Transition probabilities 
between changing sensitization levels, waitlist activity status and 
competing-risk kidney transplant outcomes using multi-state 
modeling. PLoS ONE, 12(12), e0190277-e0190277. <a href="https://doi.org/10.1371/journal.pone.0190277">https://doi.org/10.1371/journal.pone.0190277</a>.
    \98\ Kataria, A., Gowda, M., Lamphron, B.P., Jalal, K., Venuto, 
R.C., & Gundroo, A.A. (2019b). The impact of systematic review of 
status 7 patients on the kidney transplant waitlist. BMC Nephrology, 
20(1). <a href="https://doi.org/10.1186/s12882-019-1362-6">https://doi.org/10.1186/s12882-019-1362-6</a>.
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    Furthermore, while a transplant hospital is required to notify 
patients when they are first added to or removed from a waitlist, there 
is currently no requirement for transplant hospitals to inform patients 
on its waitlist when there is a change in waitlist status (that is, 
from active to inactive).<SUP>99</SUP> <SUP>100</SUP> It is important 
for transplant candidates to be aware of whether they are active or 
inactive on the waiting list and to understand that they are only 
eligible to receive an organ for transplant while in an active status.
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    \99\ UNOS Transplant Living. (n.d.). The kidney transplant 
waitlist. UNOS Transplant Living. Retrieved April 5, 2025, from 
<a href="https://transplantliving.org/kidney/the-kidney-transplant-waitlist/">https://transplantliving.org/kidney/the-kidney-transplant-waitlist/</a>.
    \100\ While there is currently no requirement for transplant 
hospitals to inform patients on its waitlist when there is a change 
in waitlist status, we acknowledge that the OPTN has recently 
proposed such a policy.
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    As such, we are proposing to add new requirements at Sec.  
512.442(d) for IOTA participants to notify their IOTA waitlist patients 
who are Medicare beneficiaries when their waitlist status has changed. 
Specifically, we propose, at Sec.  512.442(d)(1)(i), that IOTA 
participants must notify their IOTA waitlist patients who are Medicare 
beneficiaries any time their status on its waitlist is changed that 
would impact their ability to receive an organ offer (that is, from 
active to inactive). We seek comment on our proposal to add a change in 
waitlist transparency requirement at proposed Sec.  512.442(d)(1)(i).
    We considered but did not propose requiring IOTA participants to 
also notify their IOTA waitlist patients who are Medicare beneficiaries 
whenever

[[Page 57620]]

their status changes from inactive to active in addition to whenever 
their waitlist status changes from active to inactive. We believe this 
alternative considered would ensure that IOTA waitlist patients who are 
Medicare beneficiaries are immediately informed when they regain 
eligibility to receive organ offers, which is critical for their 
potential access to life-saving transplantation, while enhancing 
beneficiary engagement through transparency about significant changes 
in transplant eligibility status and guaranteeing consistent, timely 
information across all IOTA participants. However, we recognize that 
requiring such notifications could impose significant administrative 
burden on IOTA participants, particularly IOTA participants with 
limited resources, requiring substantial investments in new systems and 
staff time that could divert resources from direct patient care. 
Additionally, frequent status change notifications might create patient 
anxiety and unrealistic expectations about organ offer immediacy, 
potentially overwhelming clinical teams and undermining transparency 
goals, while standardized requirements may fail to account for diverse 
patient populations with varying literacy levels and communication 
needs. While we are not proposing to also require IOTA participants to 
notify their IOTA waitlist patients who are Medicare beneficiaries 
whenever their status from inactive to active, we are seeking public 
comment regarding whether the inclusion of a notification whenever 
their waitlist status changes from inactive to active in addition to 
whenever their waitlist status changes from active to inactive would be 
preferable and would not impose additional administrative burden upon 
IOTA participants.
    We propose at Sec.  512.442(d)(1)(ii) that IOTA participants must 
include all of the following in this notification to IOTA waitlist 
patients who are Medicare beneficiaries:
    The most recent date the IOTA waitlist patient who is a Medicare 
beneficiary became inactive.
    <bullet> The reason for the change in waitlist status.
    <bullet> That the IOTA waitlist patient who is a Medicare 
beneficiary cannot receive organ offers while inactive.
    <bullet> Information on how the IOTA waitlist patient who is a 
Medicare beneficiary may become active on its waitlist again (for 
example, updating personal information, providing new clinical data, 
addressing insurance issues or other factors such as medical, 
psychosocial, and socioeconomic).
    <bullet> How the IOTA waitlist patient who is a Medicare 
beneficiary may contact the IOTA participant for more information or 
with any questions.
    We seek public comment on our proposed change in waitlist status 
notification requirements at proposed Sec.  512.442(d)(1)(ii). In 
addition, we are also interested in comments on whether the proposed 
information to include in the change in waitlist status notification 
should include additional information.
    We propose at Sec.  512.442(d)(1)(iii) that IOTA participants must 
provide this notification to the IOTA waitlist patient who is a 
Medicare beneficiary--
    <bullet> Electronically or by mail;
    <bullet> Within 10 days of the IOTA waitlist patient who is a 
Medicare beneficiary's change in waitlist status--consistent with the 
patient records requirements at Sec.  482.94(c)(2); and
    <bullet> Annually, thereafter, for as long as the Medicare 
beneficiary remains inactive (that is; 365 consecutive days).
    We considered alternative methodologies for implementing this 
provision. For example, we considered delaying the implementation of 
this provision until PYs 3 or 4, in conjunction with the proposed 
transparency into kidney transplant organ offers requirement to share 
information about declined kidney transplant organ offers, as described 
in section II.B.4.a(3) of this proposed rule. However, we believe that 
this proposed requirement would impose less administrative burden on 
IOTA participants than the proposed transparency into kidney transplant 
organ offers requirement to share information about declined kidney 
transplant organ offers, as described in section II.B.4.a(3) of this 
proposed rule, and could be implemented at an earlier stage.
    We also considered alternative timelines for continued notification 
that an IOTA waitlist patient who is a Medicare beneficiary remains 
inactive on an IOTA participants waitlist, such as every 60 days, 90 
days, or 180 days, but proposed an annual update based on an attempt to 
balance utility to the beneficiary with burden on the IOTA 
participants. We further considered alternative timelines not 
predicated on consecutive days but instead based on inactive status for 
at least 75 percent or 90 percent of days during a specified timeline, 
rather than reaching 365 consecutive days. We additionally considered 
an alternative timeline structured around the point at which an IOTA 
waitlist patient who is a Medicare beneficiary is ultimately discharged 
from a hospital. We also considered requiring IOTA participants to 
inform IOTA waitlist patients who are Medicare beneficiaries about 
internal holds; however, we were uncertain regarding the implementation 
methodology for this provision.
    We seek public comment on our proposed change in waitlist status 
delivery method and timeline requirements at proposed Sec.  
512.442(d)(1)(iii)). We also seek comment on the alternatives 
considered.
    We also propose at Sec.  512.442(d)(2) that the IOTA participant 
must record in the IOTA waitlist patient who is a Medicare beneficiary 
medical record all of the following:
    <bullet> A copy of the notification.
    <bullet> The method by which the notification was delivered.
    <bullet> The date in which the notification was sent.
    Additionally, we propose at Sec.  512.442(d)(3) that for IOTA 
waitlist patients who are Medicare beneficiaries and--
    <bullet> For ESRD patients, the IOTA participant must also notify 
the dialysis facility (as defined at 42 CFR 494.10) and managing 
clinician (as defined at 42 CFR 512.310) or nephrologist; or
    <bullet> For Non-ESRD patients,\101\ the IOTA participant must also 
notify the referring provider or practitioner providing care to the 
IOTA waitlist patient who is a Medicare beneficiary.
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    \101\ A Non-ESRD patient is someone who has healthy kidneys or 
chronic kidney disease (CKD) in a less severe form that does not 
constitute irreversible kidney failure. These patients do not 
require life-sustaining dialysis treatment or an immediate kidney 
transplant, and their condition is managed through other medical 
treatments. However, non-ESRD patients may still be eligible to get 
wait listed for a preemptive kidney transplant before their kidney 
function deteriorates to the point of requiring dialysis.
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    This notification timeframe conforms with the current timeframe at 
Sec.  482.94, however, we solicit public comment on alternative 
timeframes that may be appropriate. We expect that IOTA participants 
would be expeditious and deliberate in determining an IOTA waitlist 
patient who is a Medicare beneficiary's waitlist status and 
communicating that information to them, the OPTN, and others as 
appropriate. We propose to finalize these requirements only if they are 
not redundant with other HHS guidance.
    We seek public comment on these proposed documentation requirements 
at proposed Sec.  512.442(d)(2) through (3).
    We understand that a kidney transplant waitlist patient's condition 
or situation may change over time and warrant kidney transplant 
hospitals reassessing the kidney transplant waitlist patient to 
determine if their waitlist status should be updated.

[[Page 57621]]

However, we believe kidney transplant waitlist patients should be aware 
of these situations and the impact it has on their ability to receive 
an offer. Additionally, we also believe that ``internal holds,'' which 
are a process used by the kidney transplant hospital to temporarily not 
consider offers for a kidney transplant waitlist patient, despite the 
kidney transplant waitlist patient being listed as active with the OPTN 
are detrimental to the efficiency of the organ allocation system and 
could lead to increased organ discards by slowing down the allocation 
process. At present, there are no national policies mandating that 
kidney transplant waitlist patients be notified when they are 
designated as inactive, whether due to patient-specific reasons or 
after an extended period of inactivity. We believe that this proposed 
requirement would establish consistency across all IOTA participants in 
informing IOTA waitlist patients who are Medicare beneficiaries about 
their inactive waitlist status and are unable to receive organ offers. 
As such, we believe that these IOTA waitlist patients who are Medicare 
beneficiaries would gain greater awareness of their listing status and 
the necessary steps to become eligible to receive an organ for 
transplant.
    Furthermore, we believe that the proposals in this section would 
improve communication between IOTA participants and their IOTA waitlist 
patients who are Medicare beneficiaries regarding their waitlist status 
and the implications of being inactive on a waitlist. Although these 
proposed requirements could create additional work for transplant 
coordinators in particular, we believe that they would promote 
effective and safe care for persons with organ failure by increasing 
IOTA waitlist patients who are Medicare beneficiaries' awareness of 
their inactive waitlist status and provide them with the information 
required to be proactive in their reactivation. We note that the intent 
of these notifications is to prevent IOTA waitlist patients who are 
Medicare beneficiaries from being inactive on a waitlist for 
unnecessarily extended period of times.
b. Health Equity Plans
    In the 2024 Final Rule (89 FR 96407), in response to comments,\102\ 
we finalized at Sec.  512.446(a) that an IOTA participant may 
voluntarily submit a health equity plan for all performance years (PY 1 
through PY 6) and in a form and manner and by the date(s) specified by 
CMS. We also finalized that a health equity plan voluntarily submitted 
by an IOTA participant must include all elements at Sec.  512.446(a)(1) 
through (7). We direct readers to the 2024 Final Rule for a full 
discussion of this policy, our rationale for this approach, and 
alternatives considered (89 FR 96405 through 96407). Lastly, we 
proposed and finalized the definitions for ``Health equity goal'', 
``Health equity plan'', ``Health equity plan intervention strategy'', 
and ``Health equity plan performance measure'' at Sec.  512.402.
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    \102\ Commenters provided mixed opinions to the proposed health 
equity plan provisions, with approximately 70 percent expressing 
concern that it would be an unfunded administrative burden and would 
have unintended consequences. Approximately 10-15 percent of 
commenters expressed clear support and 15-20 percent of commenters 
neither clearly supported nor opposed but offered suggestions for 
improvement.
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    We continue to maintain that understanding and addressing the 
health needs of all IOTA waitlist patients and IOTA transplant patients 
remains essential to ensuring their benefit through improved access to 
the transplantation ecosystem. However, in consideration of the current 
Administration's priorities and concerns regarding the imposition of 
additional burden on IOTA participants within a mandatory model, we 
propose removing the voluntary health equity plan provisions from the 
IOTA Model. We recognize that requesting IOTA participants to submit 
health equity plans, even on a voluntary basis, could impose an 
additional burden on IOTA participants. As such, we believe removing 
the voluntary health equity plan provisions from the IOTA Model would 
reduce burden on IOTA participants and constitute a more effective 
utilization of IOTA participant resources to focus on increasing access 
to kidney transplants, which would enhance their performance within the 
model and improve the quality of care.
    Therefore, in this proposed rule we are proposing to remove the 
health equity plan provisions from Sec.  512.446 (a)(1) through (7). 
Though currently there is no replacement for these policies, CMS may 
consider adding elements that are consistent with the current 
Administration's focus on Making America Healthy Again (MAHA) through 
future notice and comment rule making. We believe there is an 
opportunity through IOTA Model to drive improvements in overall health 
by increasing access to kidney transplants. Lastly, given that we are 
proposing to remove all healthy equity provisions at Sec.  512.446, we 
propose removing the definitions for health equity goal, health equity 
plan, health equity plan intervention strategy, and health equity plan 
performance measure at Sec.  512.402. We are proposing to remove all 
health equity plan provisions at Sec.  512.446 to reduce burdensome 
requirements on IOTA participants to allow IOTA participants to focus 
their resources on the core objective of the model, increasing access 
to kidney transplants, as well as to comply with Executive Order 14151 
Ending Radical and Wasteful Government DEI Programs and Preferencing 
(90 FR 8339) \103\ issued January 20, 2025. CMS also wants to reiterate 
that allocation and transplantation decisions should be made based on 
objective and measurable medical criteria through the framework set up 
by the OPTN under 42 CFR 121.8 and should not be made on the basis of 
race or other criteria not laid out by the goals described in this 
section of the CFR.
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    \103\ Ending Radical And Wasteful Government DEI Programs And 
Preferencing: <a href="https://www.whitehouse.gov/presidential-actions/2025/01/ending-radical-and-wasteful-government-dei-programs-and-preferencing/">https://www.whitehouse.gov/presidential-actions/2025/01/ending-radical-and-wasteful-government-dei-programs-and-preferencing/</a>.
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    We seek comment on our proposal to remove health equity plans from 
the IOTA Model and remove the corresponding regulations at Sec.  
512.446. We also seek comment on our proposal at Sec.  512.402 to 
remove the definitions of health equity goals, health equity plan 
intervention, health equity plan performance measure(s), health equity 
project plan, resource gap analysis, target health disparities, and 
underserved communities.
5. Beneficiary Protections
a. Background
    In the 2024 Final Rule (89 FR 96413), we finalized that IOTA 
participants must provide notice to attributed patients that they are 
participating in the IOTA Model as described in Sec.  512.450(a)(1). 
However, CMS only has the authority to place requirements upon 
notifications to Medicare beneficiaries. As such, this notice should 
have been limited to Medicare beneficiaries. Therefore, we propose to 
update the policy at Sec.  512.450(a)(1) to limit these notification 
requirements to Medicare beneficiaries only.
    We seek comment on our proposal at proposed Sec.  512.450(a)(1) to 
limit the notification requirement to Medicare beneficiaries.
b. Beneficiary Notifications
    In the 2024 Final Rule (89 FR 96413), we finalized that in order to 
notify attributed patients of their rights and protections, and that 
the IOTA participant is participating in the IOTA

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Model, the IOTA participant needed to provide an approved beneficiary 
notification template to each attributed patient in a paper format as 
described in Sec.  512.450(a)(3)(iii).
    Since then, we have received feedback from IOTA participants that 
the main form of communication with their patients is through 
electronic means, often a patient portal where the patients receive all 
communication from the IOTA participant. We propose at Sec.  
512.450(a)(3)(iii)(A) and (B) allowing IOTA participants to distribute 
the paper copy of this notification to applicable attributed patients 
at their first office visit or other outpatient visit with the 
attributed patient after the start of the Model or, if the attributed 
patient has affirmatively opted out of receiving paper communication 
and has chosen to receive communication through electronic methods, 
this notification can be distributed through that agreed upon 
electronic method.
    We seek comment on our proposal at proposed Sec.  
512.450(a)(3)(iii)(A) and (B) to allow IOTA participants to distribute 
this paper notification at the first in office or outpatient visit, or 
to distribute the notification in an electronic format in cases where 
the attributed patient has affirmatively opted out of receiving paper 
communications.
6. Monitoring
    In the 2024 Final Rule (89 FR 96430), we finalized a list of 
monitoring activities to ensure compliance and promote the safety of 
attributed patients and the integrity of the IOTA Model as described in 
Sec.  512.462(b)(2). Monitoring activities include documentation 
requests including surveys and questionnaires, audits of claims data, 
quality measures, medical records, interviews, site visits, monitoring 
attributed patient engagement incentives, monitoring out of sequence 
allocation, etc. However, we inadvertently omitted monitoring of the 
transparency requirements specified in Sec.  512.442. These include:
    <bullet> Publicly posting selection criteria in accordance with 
Sec.  512.442(a);
    <bullet> Informing eligible IOTA waitlist beneficiaries, as defined 
in section II.B.4.a(3) of this proposed rule, of the number of times an 
organ is declined on the Medicare beneficiary's behalf in accordance 
with proposed Sec.  512.442(b);
    <bullet> Reviewing selection criteria with IOTA waitlist patients 
who are Medicare beneficiaries at least once every 6 months that the 
Medicare beneficiary is on their waitlist as specified in Sec.  
512.442(c); and,
    <bullet> Notifying IOTA waitlist patients who are Medicare 
beneficiaries when their waitlist status has changed from active to 
inactive in accordance with proposed Sec.  512.442(d). Therefore, we 
propose a

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Indexed from Federal Register on December 11, 2025.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.