If the DRG base rate increases while the DRG weight stays the same, what happens to the DRG payment?

• A. The DRG payment remains the same.
• B. The DRG payment increases proportionally with the base rate.
• C. The DRG payment decreases.
• D. The DRG payment becomes more variable.

Answer: (B)

DRG payment is computed by multiplying the DRG weight by the DRG base rate. When the weight stays the same and the base rate increases, the payment rises by the same proportional amount as the base rate increase. For example, if the base rate goes up by 20% while the weight is unchanged, the DRG payment also goes up by 20%. The only way the payment would not rise in step with the base rate is if the weight changed or if other adjustments applied, but with a constant weight, the increase is proportional.