The Medicare Payment Advisory Commission approved a final recommendation, saying hospital inpatient and outpatient Medicare payments should be increased by 1 percent in fiscal year 2014 despite the fiscal cliff agreement, according to an AHA News Now report.
In the report, MedPAC Chair Glenn Hackbarth, JD, said the 1 percent update comes despite cuts embedded within the American Taxpayer Relief Act of 2012, or the fiscal cliff law. That legislation stated that hospitals and health systems will lose roughly $11 billion over four years due to documentation and coding adjustments, as well as an additional $4.2 billion over the next decade in reduced Medicaid disproportionate share payments.
If CMS approves MedPAC's recommendation, hospitals would receive roughly $2 billion in increased Medicare payments, starting this October.
American Hospital Association President and CEO Rich Umbdenstock praised MedPAC's recommendation, saying the increased Medicare payments will help hospitals that "have been hit with repeated cuts, totaling $250 billion over the next 10 years." However, he said all documentation and coding adjustments should be removed from future payment updates.
"We continue to believe that MedPAC's recommendation for additional reductions for document and coding changes is unwarranted," Mr. Umbdenstock said in the report. "We strongly urge Congress to follow MedPAC's payment update recommendation…and to reject any further reductions to hospitals in the upcoming debate on the debt ceiling and sequester."
While hospitals found a shred of good news, the same could not be said for ambulatory surgery centers. MedPAC voted to eliminate a Medicare increase for ASCs next year.
In the report, MedPAC Chair Glenn Hackbarth, JD, said the 1 percent update comes despite cuts embedded within the American Taxpayer Relief Act of 2012, or the fiscal cliff law. That legislation stated that hospitals and health systems will lose roughly $11 billion over four years due to documentation and coding adjustments, as well as an additional $4.2 billion over the next decade in reduced Medicaid disproportionate share payments.
If CMS approves MedPAC's recommendation, hospitals would receive roughly $2 billion in increased Medicare payments, starting this October.
American Hospital Association President and CEO Rich Umbdenstock praised MedPAC's recommendation, saying the increased Medicare payments will help hospitals that "have been hit with repeated cuts, totaling $250 billion over the next 10 years." However, he said all documentation and coding adjustments should be removed from future payment updates.
"We continue to believe that MedPAC's recommendation for additional reductions for document and coding changes is unwarranted," Mr. Umbdenstock said in the report. "We strongly urge Congress to follow MedPAC's payment update recommendation…and to reject any further reductions to hospitals in the upcoming debate on the debt ceiling and sequester."
While hospitals found a shred of good news, the same could not be said for ambulatory surgery centers. MedPAC voted to eliminate a Medicare increase for ASCs next year.
More Articles on MedPAC:
AHA to MedPAC: Save Hospital Medicare Payments in 2014
MedPAC Proposes 1% Hospital Payment Boost in 2014
AHA Urges MedPac to Refrain From Expanding "Site Neutral" Payment Policy for Outpatient Services