MedPAC Releases March 2011 Report to Congress - March 23, 2011

On March 15, 2011, the Medicare Payment Advisory Commission (MedPAC) released its March 2011 Report to Congress - Medicare Payment Policy. In the report, MedPAC recommends a modest 1% payment update for both inpatient and outpatient hospital services for 2012. MedPAC’s recommended 1% inpatient update was reduced from 2.5% to recoup documentation and coding overpayments for 2010 and 2011. MedPAC also asserts that a modest 1% outpatient update is needed to slow growing payment rate disparities among ambulatory care settings (physician practices and ambulatory surgery centers v. hospital outpatient entities).