MedPAC Recommends 1% Increase for Hospital Inpatient, Outpatient Services

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The Medicare Payment Advisory Commission finalized recommendations yesterday that included 1 percent increases for hospital inpatient and outpatient payments, but MedPAC also moved forward with a controversial proposal on non-emergency evaluation and management services for hospitals, according to an AHA News Now report.

MedPAC approved a recommendation that would equalize Medicare payment rates for non-emergency E/M services between hospital outpatient departments and physician office settings. This would reduce HOPD payments for E/M clinic visits by more than 70 percent, but MedPAC advised that these changes be gradually enforced over three years, according to the report.


If the E/M recommendation is enforced by Congress, some hospitals with a disproportionate share percentage of 0.25 percent or higher would have payment reductions limited to 2 percent of overall Medicare payments.

MedPAC's final hospital payment recommendations for FY 2013 were consistent with its December meeting. MedPAC's next meeting will take place March 8-9.

Related Articles on MedPAC:

MedPAC Discusses Payment Changes for Post-Acute Providers Starting FY 2013

AHA Opposes MedPAC's Proposal to Equalize E/M Medicare Payment Rates

Health Affairs: MedPAC's SGR Fix Commits "Regrettable" Policy Errors

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