MedPAC discusses draft 2017 payment recommendations for hospital services

The Medicare Payment Advisory Commission today discussed a draft recommendation that would update payments for hospital inpatient and outpatient services in 2017 as outlined under current law, that is, an estimated 1.65%. In addition, MedPAC discussed a draft recommendation that would reduce Part B drug payment rates for hospitals participating in the 340B Drug Pricing Program by 10% of the average sales price and redistribute those savings to hospitals providing uncompensated care services. Another draft recommendation would require Medicare to distribute uncompensated care payments made under the disproportionate share hospital program based on data from Schedule S-10 of the hospital’s Medicare cost report, a change that would be phased in over three years. “We are troubled that MedPAC is questioning the wisdom of Congress in designing the 340B program,” said Joanna Hiatt Kim, AHA vice president for payment policy. “It is inappropriate for a Medicare commission to be weighing in on the intent of a congressionally mandated public health program that falls under the purview of the Health Resources and Services Administration.” In other sessions today, MedPAC discussed draft recommendations that would update physician payments in accordance with current law (estimated at 0.5%) and provide no update to payments for ambulatory surgery centers. The commission is expected to vote on final payment recommendations for 2017 when it meets in January.