News: MedPAC proposes increase for Medicare payment rates

The Medicare Payment Advisory Commission (MedPAC) has recommended that Congress update Medicare payment rates for hospital inpatient and outpatient services, according to the American Hospital Association (AHA).

The recommendations include an additional 1.5% increase to already existing Medicare payment rates, in addition to a $4 billion earmark for safety-net hospitals.

According to the AHA, here are some the other actions cited in the MedPAC proposals:

• Update 2025 Medicare payments for physicians and other health professional services by half the Medicare Economic Index increase

• Enact a non-budget-neutral add-on payment under the physician fee schedule to services provided to low-income Medicare beneficiaries

• Reduce 2025 payment rates for home health agencies by 7%
• Reduce 2025 payment rates for skilled nursing facilities by 3%
• Reduce 2025 payment rates for inpatient rehabilitation facilities by 5%

Editor’s note: To read the AHA coverage of the MedPAC recommendations, click here.