MedPAC Recommends Nursing Home Rate Freeze

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The Medicare Payment Advisory Commission (MedPAC) voted to approve a series of recommendations to Congress that include freezing reimbursement rates for skilled nursing facilities. Other changes included in the recommendations were implementing Medicare’s first pay-for-performance policies, reducing reimbursements to hospitals, and freezing home care and hospice reimbursement rates.
In its draft recommendations in December, MedPAC demonstrated double-digit profit margins for home care agencies and skilled nursing facilities, as well as data which suggested there was sufficient access to care, volume of service, quality of care and other factors that imply current payment levels are adequate. MedPAC also reiterated its recommendation that the skilled nursing facility prospective payment system (PPS) be revised to eliminate inherent biases. To read more on the recommendations, click here.


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