Noteworthy News

MedPAC Offers Recommendations to Congress

MedPAC’s March 2012 report to Congress include several recommendations to provide no payment increases in FY 2013.

The March report is MedPAC’s major annual report to Congress, and among its many Medicare proposals, it called for:

  • increasing Medicare inpatient and outpatient payments one percent;
  • reducing evaluation and management (E&M) payments for outpatient services over the next three years and studying their eventual elimination (during the proposed three-year phase-in of the cuts, their impact would be limited for Medicare disproportionate share (Medicare DSH) hospitals);
  • repealing the sustainable growth rate (SGR) formula for determining payments to physicians and replacing it with a “10-year path” of statutory fee-schedule updates;
  • identifying overpriced services on the fee schedule and reducing their relative values;
  • Increasing payments to ambulatory surgical centers 0.5 percent and implementing a value-based purchasing program for ambulatory surgical centers no later than 2016;
  • providing no update for skilled nursing facility payments in 2013, rebasing future payments with an initial reduction of four percent, and reducing payments to facilities with high risk-adjusted rates of hospitalization;
  • rebasing home health payments and eliminating this year’s market basket update;
  • providing no market basket update to inpatient rehabilitation facilities in FY 2013; and
  • providing no update for long-term-care hospitals in FY 2013.

Find a MedPAC fact sheet and the complete report hereiStock_000014445371XSmall.

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