MedPAC unveils draft payment recommendations for 2025

The Medicare Payment Advisory Commission Dec. 8 discussed draft payment update 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%, and transition to a safety-net index policy that would distribute an additional $4 billion to safety-net hospitals. They also propose that Congress:

•    Update 2025 Medicare payments for physicians and other health professional services by 50% of the Medicare Economic Index increase, and enact 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 7%.
•    Reduce the 2025 payment rate for skilled nursing facilities by 3%.
•    Reduce the 2025 payment rate for inpatient rehabilitation facilities by 5%.