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.
