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Index/Topics/New COVID-19 Treatments Add-on Payment

New COVID-19 Treatments Add-on Payment

The New COVID-19 Treatments Add-on Payment (NCTAP) was established and subsequently extended through the end of the fiscal year in which the PHE ends to mitigate disincentives for new treatments.

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Jan 7, 2026

What were the exact Medicare IPPS rate changes (DRG weights and dollar amounts) applied to COVID‑19 DRGs during the PHE?

The CARES Act and subsequent CMS guidance applied a statutory 20% add-on to the DRG weighting for inpatient Medicare discharges with a COVID-19 diagnosis during the Public Health Emergency (PHE), and ...