This week, the Medicare Payment Advisory Commission will vote on payment recommendations for fiscal year 2014, and the American Hospital Association has told the federal body that positive updates to both hospital inpatient and outpatient payments are "absolutely essential."
Last month, MedPAC commissioners unveiled a draft recommendation to increase Medicare hospital payments for inpatient and outpatient services by 1 percent each in 2014. In a letter (pdf) to Glenn Hackbarth, JD, chairman of MedPAC, the AHA said those recommendations would not suffice in light of Congress' recent fiscal cliff deal.
Within the American Taxpayer Relief Act of 2012, CMS will cut hospital inpatient payments by $11 billion between FY 2014 and FY 2017, which AHA said averages to a 2.4 percent Medicare cut per year. The cuts were labeled as document and coding adjustments, which Congress said offset inflated hospital payments as the healthcare system transitioned to MS-DRGs. The AHA also noted the fiscal cliff deal did not include a solution for sequestration, which could decrease Medicare payments by 2 percent beginning in April.
The AHA recommended MedPAC issue higher overall Medicare updates to hospital payments and that "no additional adjustments for documentation and coding should be considered," according to the letter.
Last month, MedPAC commissioners unveiled a draft recommendation to increase Medicare hospital payments for inpatient and outpatient services by 1 percent each in 2014. In a letter (pdf) to Glenn Hackbarth, JD, chairman of MedPAC, the AHA said those recommendations would not suffice in light of Congress' recent fiscal cliff deal.
Within the American Taxpayer Relief Act of 2012, CMS will cut hospital inpatient payments by $11 billion between FY 2014 and FY 2017, which AHA said averages to a 2.4 percent Medicare cut per year. The cuts were labeled as document and coding adjustments, which Congress said offset inflated hospital payments as the healthcare system transitioned to MS-DRGs. The AHA also noted the fiscal cliff deal did not include a solution for sequestration, which could decrease Medicare payments by 2 percent beginning in April.
The AHA recommended MedPAC issue higher overall Medicare updates to hospital payments and that "no additional adjustments for documentation and coding should be considered," according to the letter.
More Articles on Hospital Medicare Payments:
MedPAC Proposes 1% Hospital Payment Boost in 2014
AHA Urges MedPac to Refrain From Expanding "Site Neutral" Payment Policy for Outpatient Services
Medicare Approves Slight Raises in HOPD, ASC Rates for 2013