AHA comments on MedPAC payment proposals for 2025 

Jan 05, 2024 - 02:27 PM
medpac-update

AHA Jan. 5 thanked the Medicare Payment Advisory Commission for its draft recommendation to provide a current-law market basket update plus 1.5% for the hospital inpatient and outpatient prospective payment systems in 2025, but urged the commission to recommend a higher update to account for the sustained and substantial financial pressures hospitals face.

“According to MedPAC, Medicare margins hit a record low in 2022 at negative 12.7% when excluding COVID-19 pandemic relief funds and negative 11.6% when including COVID-19 pandemic relief funds,” the letter notes. “Furthermore, MedPAC projects 2024 Medicare margins to remain depressed at negative 13%.”

Among other comments, AHA urged the commission to recommend current law updates for inpatient rehabilitation facilities, hospital-based skilled nursing facilities and home health agencies; and a higher update for physicians to more fully account for the impact of inflation.

Related News Articles

Headline
KFF: Medicare spent 27% more for people who disenrolled from MA than those continuously in Traditional Medicare
An analysis by KFF released last week found that in 2022, Medicare spent 27% ($2,585) more, on average, for individuals covered by Traditional Medicare after…
Headline
Bipartisan letter calling for prevention of Medicaid DSH cuts gets signatures from 182 members of Congress
A House Dear Colleague letter calling on House leadership to address scheduled Medicaid Disproportionate Share Hospital payment cuts received signatures from…
Headline
AHA responds to Medicare $2 Drug List Model request for information
The AHA Dec. 9 said it supports a potential Medicare $2 Drug List Model, where people enrolled in a Part D plan would have access to certain prescription drugs…
Headline
AHA supports physician reimbursement, alternative payment model incentives in comments to MedPAC
In comments Dec. 9 to the Medicare Payment Advisory Commission, the AHA shared its views on physician fee schedule payments, advanced alternative payment model…
Headline
CMS releases proposed rule for 2026 Medicare Advantage, prescription drug plans
The Centers for Medicare & Medicaid Services Nov. 26 proposed changes to the Medicare Advantage and prescription drug programs for contract year 2026.…
Headline
AHA comments on CMS’ FY 2025 IPPS low wage policy
The AHA commented Nov. 26 on the Centers for Medicare & Medicaid Services’ hospital inpatient prospective payment system interim final action on revising…