Respiratory Infections and Inflammations with MCC: Inpatient Reimbursement Overview

DRG 177 addresses inpatient respiratory infections and inflammations when a Major Complication or Comorbidity is coded, capturing cases with greater clinical severity and resource needs. This matters for inpatient reimbursement because the presence of a Major Complication or Comorbidity increases the Diagnosis-Related Group weight and thus Medicare payment relative to less severe respiratory infection classifications.

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DRG 177 Overview

DRG 177 covers hospital inpatient cases for respiratory infections and inflammations when a Major Complication or Comorbidity is present, representing more severe presentations such as respiratory failure, severe sepsis, or other significant systemic effects. This Diagnosis-Related Group groups patients with higher resource use and longer lengths of stay compared with lower-severity respiratory infection DRGs, which affects Medicare payment by assigning a higher relative weight for reimbursement. Accurate clinical documentation and coding of the Major Complication or Comorbidity are central to assignment to DRG 177, influencing claim payment and hospital revenue. Facilities should be aware that complications related to the respiratory condition drive the increased payment level.

National Payment Rates

Across commercial payers the observed payment range spans roughly from $1.1K to $67K, with the widest spread between Anthem (min/max up to $67K) and other payers. Blue Cross Blue Shield, Cigna, Aetna and Anthem show differing median levels, reflecting notable variability in negotiated rates across payers. See the table and chart below for payer-specific quartiles and distributions.

The CMS 2023 data represent national Medicare FFS inpatient payments published under the CMS Provider Utilization and Payment Data program. The table below shows average total payment ($16.1k), average submitted covered charges ($66.3k), average Medicare payment amount ($13.9k), and total discharges (168.969k).

Average Total Payment	Average Submitted Charges	Average Medicare Payment	Total Discharges
$16K	$66K	$14K	170K

Patient Population

This DRG’s patient mix includes a substantial portion of Medicare-age patients, given the high volume of Medicare discharges reflected in CMS data, but also includes working-age patients covered by commercial plans. The population therefore appears mixed but leans toward Medicare-age coverage. Age distribution typically spans older adults as well as some younger, commercially insured patients.

State Payment Rates

State: Alaska1 / 49

Alaska Benchmarks

Payer rates for DRG 177 in Alaska span a wide range, with observed values from roughly $7.5K at the low end up to $67K at the high end across payers. Cigna’s median (~$37K) stands out as a notable positive deviation relative to national medians for comparable payers, while Blue Cross Blue Shield’s median of $24K sits nearer typical national levels. See the table and chart below for payer-specific quartiles and distributions.

Key Insights for Alaska

BCBS is the lowest paying payer for DRG 177 in Alaska with a median of $24K, while Cigna is the highest with a median of $37K.
Payer rates in Alaska range from approximately $7.5K to $67K across payers and percentiles, and Cigna’s higher median (~$37K) meaningfully exceeds national medians for major payers.

Clinical Trials

Acute therapeutic intervention trials evaluating novel or repurposed pharmacologic or biologic agents for severe respiratory infections in hospitalized adults with major complications (eg, respiratory failure, sepsis, or need for mechanical ventilation). These studies typically enroll patients early in their admission who meet criteria for a high-risk phenotype (advanced age, immunosuppression, significant comorbid cardiopulmonary disease) to assess endpoints such as time to clinical stabilization, need for ICU escalation, ventilator-free days, and in-hospital mortality. Results are directly relevant to inpatient care pathways and resource allocation for payers because they inform which acute treatments reduce length of stay, ICU utilization, and complication-related costs in DRG 177 patients.
Comparative effectiveness and antimicrobial stewardship studies comparing diagnostic-driven strategies (rapid pathogen identification, procalcitonin-guided therapy) versus standard empiric antibiotic approaches for complicated respiratory infections and inflammations. These trials enroll hospitalized patients with suspected bacterial or mixed infections and major complications to determine if targeted therapy reduces antibiotic exposure, adverse drug events, readmission, and secondary infections such as C. difficile. For providers and payers, evidence from these trials supports protocols that can lower medication costs, antimicrobial resistance burden, and downstream utilization while maintaining clinical outcomes for high-risk DRG 177 cohorts.
Post-discharge outcomes and care-transition studies focused on reducing readmissions and long-term morbidity after a complicated respiratory infection hospitalization, including programs testing comprehensive discharge bundles (pulmonary rehabilitation referrals, home oxygen titration, telemonitoring, and coordinated follow-up). These pragmatic trials recruit survivors of severe in-hospital infections with MCCs and measure 30–90 day readmission rates, functional status, quality of life, and downstream health care spending. Payers and hospital administrators use this evidence to design discharge processes and post-acute services that decrease costly readmissions and improve value for patients classified under DRG 177.

Related Codes

163-MAJOR-CHEST-PROCEDURES-WITH-MCC

Major Chest Procedures with MCC: Inpatient Reimbursement Overview

164-MAJOR-CHEST-PROCEDURES-WITH-CC

Major Chest Procedures with CC: Inpatient Reimbursement Overview

165-MAJOR-CHEST-PROCEDURES-WITHOUT-CC-MCC

Major Chest Procedures without CC/MCC: Inpatient Reimbursement Overview

166-OTHER-RESPIRATORY-SYSTEM-O-R-PROCEDURES-WITH-MCC

Other Respiratory System O.R. Procedures with MCC: Inpatient Reimbursement Overview

167-OTHER-RESPIRATORY-SYSTEM-O-R-PROCEDURES-WITH-CC

Other Respiratory System O.R. Procedures with CC: Inpatient Reimbursement Overview

168-OTHER-RESPIRATORY-SYSTEM-O-R-PROCEDURES-WITHOUT-CC-MCC

Other Respiratory System O.R. Procedures without CC/MCC: Inpatient Reimbursement Overview

173-ULTRASOUND-ACCELERATED-AND-OTHER-THROMBOLYSIS-WITH-PRINCIPAL-DIAGNOSIS-PULMONARY-EMBOLISM

Ultrasound Accelerated and Other Thrombolysis with Principal Diagnosis Pulmonary Embolism: Inpatient Reimbursement Overview

175-PULMONARY-EMBOLISM-WITH-MCC-OR-ACUTE-COR-PULMONALE

Pulmonary Embolism with MCC or Acute Cor Pulmonale: Inpatient Reimbursement Overview

176-PULMONARY-EMBOLISM-WITHOUT-MCC

Pulmonary Embolism without MCC: Inpatient Reimbursement Overview

178-RESPIRATORY-INFECTIONS-AND-INFLAMMATIONS-WITH-CC

Respiratory Infections and Inflammations with CC: Inpatient Reimbursement Overview

Showing 1–10 of 40

References

1.CPT® Codes and Descriptions. AAPC. Retrieved Aug 11, 2026.Maintains the CPT code set's official descriptions and guidelines, licensed from the American Medical Association, used as the definitional source for CPT codes on this page.
2.HCPCS Quarterly Update. Centers for Medicare & Medicaid Services (CMS). Retrieved Aug 11, 2026.CMS's quarterly release of HCPCS Level II codes and short/long descriptors, the source for HCPCS code definitions and update history.
3.ICD-10-CM Full Code List. Centers for Medicare & Medicaid Services (CMS). Retrieved Aug 11, 2026.CMS's complete ICD-10-CM diagnosis code list, used to cross-reference diagnosis codes associated with this procedure or service.

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National Payment Rates

Mean Rates by Payer — National — DRG 177

Average Total Payment	Average Submitted Charges	Average Medicare Payment	Total Discharges
$16K	$66K	$14K	170K

Patient Population

State Payment Rates

State: Alaska1 / 49

Alaska Benchmarks

Mean Rates by Payer — Alaska — DRG 177

Key Insights for Alaska

BCBS is the lowest paying payer for DRG 177 in Alaska with a median of $24K, while Cigna is the highest with a median of $37K.
Payer rates in Alaska range from approximately $7.5K to $67K across payers and percentiles, and Cigna’s higher median (~$37K) meaningfully exceeds national medians for major payers.

Clinical Trials

Acute therapeutic intervention trials evaluating novel or repurposed pharmacologic or biologic agents for severe respiratory infections in hospitalized adults with major complications (eg, respiratory failure, sepsis, or need for mechanical ventilation). These studies typically enroll patients early in their admission who meet criteria for a high-risk phenotype (advanced age, immunosuppression, significant comorbid cardiopulmonary disease) to assess endpoints such as time to clinical stabilization, need for ICU escalation, ventilator-free days, and in-hospital mortality. Results are directly relevant to inpatient care pathways and resource allocation for payers because they inform which acute treatments reduce length of stay, ICU utilization, and complication-related costs in DRG 177 patients.
Comparative effectiveness and antimicrobial stewardship studies comparing diagnostic-driven strategies (rapid pathogen identification, procalcitonin-guided therapy) versus standard empiric antibiotic approaches for complicated respiratory infections and inflammations. These trials enroll hospitalized patients with suspected bacterial or mixed infections and major complications to determine if targeted therapy reduces antibiotic exposure, adverse drug events, readmission, and secondary infections such as C. difficile. For providers and payers, evidence from these trials supports protocols that can lower medication costs, antimicrobial resistance burden, and downstream utilization while maintaining clinical outcomes for high-risk DRG 177 cohorts.
Post-discharge outcomes and care-transition studies focused on reducing readmissions and long-term morbidity after a complicated respiratory infection hospitalization, including programs testing comprehensive discharge bundles (pulmonary rehabilitation referrals, home oxygen titration, telemonitoring, and coordinated follow-up). These pragmatic trials recruit survivors of severe in-hospital infections with MCCs and measure 30–90 day readmission rates, functional status, quality of life, and downstream health care spending. Payers and hospital administrators use this evidence to design discharge processes and post-acute services that decrease costly readmissions and improve value for patients classified under DRG 177.

Related Codes

163-MAJOR-CHEST-PROCEDURES-WITH-MCC

Major Chest Procedures with MCC: Inpatient Reimbursement Overview

164-MAJOR-CHEST-PROCEDURES-WITH-CC

Major Chest Procedures with CC: Inpatient Reimbursement Overview

165-MAJOR-CHEST-PROCEDURES-WITHOUT-CC-MCC

Major Chest Procedures without CC/MCC: Inpatient Reimbursement Overview

166-OTHER-RESPIRATORY-SYSTEM-O-R-PROCEDURES-WITH-MCC

Other Respiratory System O.R. Procedures with MCC: Inpatient Reimbursement Overview

167-OTHER-RESPIRATORY-SYSTEM-O-R-PROCEDURES-WITH-CC

Other Respiratory System O.R. Procedures with CC: Inpatient Reimbursement Overview

168-OTHER-RESPIRATORY-SYSTEM-O-R-PROCEDURES-WITHOUT-CC-MCC

Other Respiratory System O.R. Procedures without CC/MCC: Inpatient Reimbursement Overview

173-ULTRASOUND-ACCELERATED-AND-OTHER-THROMBOLYSIS-WITH-PRINCIPAL-DIAGNOSIS-PULMONARY-EMBOLISM

Ultrasound Accelerated and Other Thrombolysis with Principal Diagnosis Pulmonary Embolism: Inpatient Reimbursement Overview

175-PULMONARY-EMBOLISM-WITH-MCC-OR-ACUTE-COR-PULMONALE

Pulmonary Embolism with MCC or Acute Cor Pulmonale: Inpatient Reimbursement Overview

176-PULMONARY-EMBOLISM-WITHOUT-MCC

Pulmonary Embolism without MCC: Inpatient Reimbursement Overview

178-RESPIRATORY-INFECTIONS-AND-INFLAMMATIONS-WITH-CC

Respiratory Infections and Inflammations with CC: Inpatient Reimbursement Overview

Showing 1–10 of 40

References

1.CPT® Codes and Descriptions. AAPC. Retrieved Aug 11, 2026.Maintains the CPT code set's official descriptions and guidelines, licensed from the American Medical Association, used as the definitional source for CPT codes on this page.
2.HCPCS Quarterly Update. Centers for Medicare & Medicaid Services (CMS). Retrieved Aug 11, 2026.CMS's quarterly release of HCPCS Level II codes and short/long descriptors, the source for HCPCS code definitions and update history.
3.ICD-10-CM Full Code List. Centers for Medicare & Medicaid Services (CMS). Retrieved Aug 11, 2026.CMS's complete ICD-10-CM diagnosis code list, used to cross-reference diagnosis codes associated with this procedure or service.

Published by

Trek Health powers OpenPayer with a leading commercial payer intelligence platform, seamlessly converting fragmented payer data into actionable insights for provider organizations.