Healthcare Finance News reported that The Medicare Payment Advisory Commission (MedPAC) is recommending 5 percent payment cuts to home health agencies and inpatient rehabilitation facilities and no increases next year for long-term care hospitals, hospices, ambulatory surgical centers and skilled nursing facilities.
The bipartisan, 17-member commission recommends freezing skilled nursing facility payment rates for two years while the payment system is revised.
MedPAC said in its report to Congress that payment changes would ideally bring all types of post-acute care into a unified payment system.
“For years, the commission has noted that PAC (post-acute care) payment systems do not encourage efficient care and are not equitable across different patient stays,” the report said.
They also recommended requiring ambulatory surgical centers to submit cost data, eliminating therapy visits as a factor in payment, and expanding the inpatient rehabilitation facility outlier pool for high-cost enrollees.
In 2015, fee-for-service program spending on post-acute care services totaled $60 billion, according to the report.
Implementing its recommendations would reduce fee-for-service program spending by over $30 billion over the next 10 years, the report said.
If Congress had implemented the commission’s 2008 recommendations for skilled nursing facilities and home health agencies, spending would have been reduced by about $11 billion between 2009 and 2016, it said.
In 2016, MA enrollment increased by 5 percent to 17.5 million beneficiaries or 31 percent of all Medicare enrollees. The average beneficiary was able to choose from 18 Medicare Advantage plans in 2017.