MedPAC votes on 2025 payment recommendations

Jan 11, 2024 - 03:04 PM
Partnering on Population Health. A Black female patient in a hospital bed smiles at a female clinician of color with a smile on her face who is examining the patient in a hospital room.

The Medicare Payment Advisory Commission Jan. 11 voted to recommend that Congress update Medicare payment rates for hospital inpatient and outpatient services by the current law amount plus 1.5% for 2025, and reiterated its recommendation to distribute an additional $4 billion to safety-net hospitals by transitioning to a Medicare safety-net index policy. In other action, MedPAC recommended that Congress:

  • Update 2025 Medicare payments for physicians and other health professional services by half 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 2025 payment rates for home health agencies by 7%.
  • Reduce 2025 payment rates for skilled nursing facilities by 3%.
  • Reduce 2025 payment rates for inpatient rehabilitation facilities by 5%.

In addition, MedPAC presented status reports for the Part D program and ambulatory surgical centers. Jan. 12, the commission expects to discuss the status of the Medicare Advantage program, along with policy options to standardize benefits in MA. 

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