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
AHA shares concerns, recommendations with CMS on WISeR model
The AHA Oct. 23 recommended changes to the Centers for Medicare & Medicaid Services’ Wasteful and Inappropriate Services Reduction model to address…
Headline
CMS releases guide on prior authorization submissions, determinations under WISeR model  
The Centers for Medicare & Medicaid Services has released an operational guide for Medicare-enrolled providers and suppliers on the Wasteful and…
Headline
OIG says MA, Medicaid managed care plans have limited, inaccurate behavioral health provider networks 
A report by the Department of Health and Human Services Office of the Inspector General found that many Medicare Advantage and Medicaid managed care plans…
Headline
Medicare open enrollment for 2026 begins
Medicare open enrollment for 2026 began Oct. 15 and runs through Dec. 7. During the annual enrollment period, Medicare-eligible individuals can check their…
Headline
AHA encourages MedPAC to refine analysis of MA enrollment impacts on patients, providers
The AHA Oct. 3 responded to the Medicare Payment Advisory Commission’s recent analysis on the financial impacts of Medicare Advantage enrollment growth on…
Headline
Senate again fails to pass CR, government shutdown continues
The federal government shutdown will continue as the Senate Oct. 3 failed to adopt a government funding deal. The latest attempt to pass the House-passed…