MedPAC Considers Draft 2013 Payment Recommendations - December 20, 2011

The Medicare Payment Advisory Commission (MedPAC) considered draft recommendations to Congress wherein hospitals would receive a 1 percent net increase in inpatient and outpatient payments in 2013, but would lose revenue from outpatient evaluation and management (E&M) visits. In the recommendations, which MedPAC reviewed on Dec. 15, MedPAC proposed limiting outpatient hospital rates so that payments would equal those for a visit to a physician’s office. This proposal has been under consideration recently by Congress during discussions about potential offsets to fix the Medicare sustainable growth rate formula.

MedPAC’s proposals do not take into account the potential impact of sequestration on Medicare provider payments in 2013. But, the report could be altered when commissioners vote on final recommendations in January, in advance of their March report to Congress. NAPH will advocate on behalf of member hospitals early in the new year and urge MedPAC to consider the potential impacts of their proposals.