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Tags Posts tagged with "MedPAC"

MedPAC

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NOTE TO INSPECTOR: The word "iridium" on the pen's nib is not a brand: it's the name of the metal of which the nib is made. Thanks. Inky old fountain pen on a $100 bill.

The Medicare Payment Advisory Commission (MedPAC) held their regular public meeting on January 16 – 17, 2025. During one of their presentations, “Assessing Payment Adequacy and Updating Payments: Skilled Nursing Facility Services; Home Health Agency Services; Inpatient Rehabilitation Facility Services; Outpatient Dialysis Services; and Hospice Services,” there was a draft recommendation specific to inpatient rehabilitation facilities (IRF). The draft recommendation was for fiscal year 2026 and noted that Congress should reduce the 2025 Medicare base payment rate by 7 percent. The PowerPoint presentation is available here.

During this public meeting, MedPAC voted to finalize this recommended payment reduction to fiscal year 2026 IRF Prospective Payment System (PPS) payments. Both AMRPA and other national hospital stakeholders, on behalf of IRFs, strongly opposed this proposed payment cut (prior to the public meeting). However, MedPAC advanced the recommended cut with limited discussion about the potential impacts on patient access and IRF operations.

MedPAC’s recommendations do require Congressional action. As a result, advocacy will be planned to continue to voice concerns with this recommendation. Members will be kept apprised of any upcoming changes.

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The Medicare Payment Advisory Commission (MedPAC) has published the 2023 Data Book Health Care Spending and the Medicare Program, which provides information on national health care and Medicare spending as well as Medicare beneficiary demographics, dual-eligible beneficiaries, quality of care in the Medicare program, and Medicare beneficiary and other payer liability. It also examines provider settings — such as hospitals and post-acute care — and presents data on Medicare spending and beneficiaries’ access to care in the setting (measured by the number of beneficiaries using the service, number of providers, volume of services, length of stay, or through direct surveys). Specifically of interest is information on dual-eligible beneficiaries, including individuals with disabilities, and information on alternative payment models.

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The Medicare Payment Advisory Committee (MedPAC) voted last week and unanimously recommended a five percent payment reduction for inpatient rehabilitation facilities (IRFs), skilled nursing facilities (SNFs), and home health agencies (HHAs). There was no additional feedback provided with this recommendation; however, additional information should be provided in their upcoming March 2022 report to Congress.

Also worth noting was that MedPAC discussed its mandated report related to designing a value incentive program (VIP) for post-acute care (PAC). This report is required under the Consolidated Appropriations Act of 2021, and this was the commission’s second session dedicated to development of the PAC VIP. The report is due to Congress by March 15, 2022. Due to the limited time to develop the report, MedPAC asserted it would not be making a formal recommendation in the March Report to Congress. Also during this session, MedPAC shared its plan to submit its separate report on a unified post-acute care payment prototype to Congress in 2023.

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