MedPAC Approves Recommendations On FY 2009 Medicare Payments For Skilled Nursing Facilities, Home Health Care Agencies

Main Category: Medicare / Medicaid / SCHIP
Also Included In: Nursing / Midwifery;  Caregivers / Homecare
Article Date: 14 Jan 2008 - 8:00 PDT

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The Medicare Payment Advisory Commission on Thursday approved recommendations to Congress on fiscal year 2009 Medicare reimbursements to skilled nursing facilities and home health care agencies, CQ HealthBeat reports.

MedPAC voted to approve a recommendation to freeze FY 2009 Medicare reimbursements to skilled nursing facilities at current rates, "citing projected aggregate Medicare margins of 11.4%," according to CQ HealthBeat. In addition, MedPAC voted to recommend the establishment of a pay-for-performance program for skilled nursing facilities despite opposition from Commissioner William Scanlon, who said that such a program requires additional tests before implementation. MedPAC also approved a package of recommendations to improve quality measurements for skilled nursing facilities.

MedPAC also voted to approve a recommendation to freeze FY 2009 Medicare reimbursements to home health care agencies at current rates. According to MedPAC, the recommendation would have a limited effect on Medicare beneficiaries and providers but would reduce spending by $250 million to $750 million in 2009 and by $1.5 billion to $5 billion after five years.

In addition, MedPAC voted to approve a recommendation to eliminate a previously recommended 1% increase in FY 2009 Medicare reimbursements for inpatient rehabilitation facilities. MedPAC also voted to approve a recommendation to increase FY 2009 Medicare reimbursements for long-term care hospitals by an estimated 1.6%. Previously, MedPAC recommended a freeze on FY 2009 Medicare reimbursements for LTCHs (Carey, CQ HealthBeat, 1/10).

During the MedPAC meeting, physicians on the commission "voiced frustration and even anger about the meager or nonexistent Medicare payment increases given to doctors in recent years," CQ HealthBeat reports. MedPAC Chair Glenn Hackbarth indicated that the recommendations "should not be interpreted as MedPAC saying that everyone is OK in terms of physician payment," according to CQ HealthBeat. Hackbarth said that MedPAC seeks to revise the formula used to determine Medicare reimbursements to physicians and plans to make additional recommendations in the spring (Reichard, CQ HealthBeat, 1/10).

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