MedPAC Provides Draft Payment Recommendations for 2025
The Medicare Payment Advisory Commission (MedPAC) discussed draft payment recommendations for 2025, which the commission will vote on in January. The draft recommendations call for Congress to update Medicare payment rates for hospital inpatient and outpatient services by the current law amount plus 1.5 percent. CMS is forecasting a 2.6 percent include in the MEI for 2025; so if that forecast remains, the update would be 1.3 percent. In addition, a recommendation to transition to a safety-net index policy that would distribute an additional $4 billion to safety-net hospitals (a type of medical center in the United States that either by legal obligation or mission, provides healthcare to patients regardless of their insurance status or ability to pay). Other draft recommendations to Congress include:
- Updates to the 2025 Medicare payments for physicians and other health professional services by 50% of the Medicare Economic Index increase, and pass a non-budget-neutral add-on payment under the physician fee schedule to services provided to low-income Medicare beneficiaries;
- Reduce the 2025 payment rate for home health agencies by 7percent;
- Reduce the 2025 payment rate for skilled nursing facilities by 3 percent; and
- Reduce the 2025 payment rate for inpatient rehabilitation facilities by 5 percent.
