MedPAC drafted its 2025 payment update recommendations Dec. 8, according to the American Hospital Association.
The draft recommendations urge Congress to update hospital inpatient and outpatient service Medicare payment rates by the existing law amount with an added 1.5%. MedPAC also recommended a transition to a safety net index policy, which would provide an additional $4 billion to safety net hospitals.
Other MedPAC 2025 proposals to Congress include updating 2025 Medicare payments by 50% of the Medicare Economics Index increase, AHA reported. Under the physician fee schedule, MedPAC also suggests Congress provide a non-budget-neutral add-on payment for low-income Medicare beneficiary services.
MedPAC also urged Congress to reduce the 2025 payment rate for home health agencies by 7%, skilled nursing facilities by 3%, and inpatient rehabilitation facilities by 5%. The commission will vote on these recommendations in January 2024.