Summary of the March 2013 MedPAC Report to Congress
Every spring, the Medicare Payment Advisory Commission (MedPAC), an independent Congressional agency established to advise the U.S. Congress on issues affecting the Medicare program, issues a March report to the Congress. In the March 2013 report, MedPAC focused on several areas, including payment adequacy; payment for hospital inpatient and outpatient services; and payment in Ambulatory Surgical Centers (ASC). Health Policy staff at the Academy regularly track MedPAC reports, and highlight any recommendations that may affect members of the Academy. Reforming Medicare In the 2013 report, MedPAC analyzed growth and spending in Medicare and other factors that affect healthcare spending in the U.S. Additionally, it studied the influence spending and growth will have on Medicare and federal healthcare spending. As in previous reports, MedPAC noted that it is essential to reform Medicare to decrease the growth in spending and create incentives for beneficiaries to seek, and for providers to deliver, high quality services at the lowest possible cost. In October 2011, MedPAC recommended abandoning the Sustainable Growth Rate (SGR) and replacing it with a 10-year path of statutory fee-schedule updates. This path would be composed of a freeze in current payment levels for primary care and for all other services, annual payment reductions followed by a freeze. MedPAC once again reaffirms this recommendation in its March report. The Academy is presently working with members of Congress on a proposal to replace the SGR, and agrees that the current system is broken but does not agree with MedPAC’s recommendations and signed on to an AMA letter noting concerns. For more details on the Academy’s work to replace the SGR, see the April 2013 issue of the Bulletin. Payment Adequacy Findings and Recommendations Another aspect of the March report evaluated payment adequacy for care, services, and equipment and decides whether or not to recommend an increase, maintenance, or a decrease to payments provided to Medicare beneficiaries. In previous reports, MedPAC has called for an equalizing of payment rates for office visits provided in outpatient departments and physician offices. This is based on variations in payments between the sites of service, and the Commission’s belief that Medicare can achieve savings by equalizing payment rates. In the March 2013 report, MedPAC reiterated this recommendation. MedPAC also evaluated payment levels and the influences they have on beneficiary care and access. In the 2013 report MedPAC recommends increasing payment rates for inpatient and outpatient services in 2014 by one percent, based on an analysis of these factors. The report stipulates ASC payments and access are adequate for beneficiaries, but growth has slowed. MedPAC therefore recommended eliminating an update to payment rates in 2014 until Congress requires ASCs to begin reporting cost data to CMS. Health Policy staff will continue to attend and monitor MedPAC meetings regularly for any policies or recommendations that affect Academy members. If you have any questions about MedPAC, or its recommendations, email the Health Policy team at healthpolicy@entnet.org. New CPT Assistant: See pages 40-42 in print edition As many members know, CPT® Assistant is a product developed by the American Medical Association (AMA) and is a fully-searchable newsletter that includes more than 20 years of historical reference materials approved by the AMA CPT® Editorial Panel. Monthly issues are made available to subscribers that provide clarity on coding issues as well as accurate and reliable coding tips and interpretations. In special circumstances, the AMA grants permission to medical specialty societies, such as the AAO-HNS, to reproduce CPT® Assistant articles that are relevant to a specific specialty, or set of sub-specialties. As such, we are reproducing the following CPT® Assistant article on Thyroidectomy and Parathyroidectomy, printed in the December 2012 CPT® Assistant newsletter, to apprise members of appropriate coding for these services. Members with questions about the article should contact us at: healthpolicy@entnet.org CPT® Assistant article on Thyroidectomy and Parathyroidectomy
Every spring, the Medicare Payment Advisory Commission (MedPAC), an independent Congressional agency established to advise the U.S. Congress on issues affecting the Medicare program, issues a March report to the Congress. In the March 2013 report, MedPAC focused on several areas, including payment adequacy; payment for hospital inpatient and outpatient services; and payment in Ambulatory Surgical Centers (ASC). Health Policy staff at the Academy regularly track MedPAC reports, and highlight any recommendations that may affect members of the Academy.
Reforming Medicare
In the 2013 report, MedPAC analyzed growth and spending in Medicare and other factors that affect healthcare spending in the U.S. Additionally, it studied the influence spending and growth will have on Medicare and federal healthcare spending. As in previous reports, MedPAC noted that it is essential to reform Medicare to decrease the growth in spending and create incentives for beneficiaries to seek, and for providers to deliver, high quality services at the lowest possible cost.
In October 2011, MedPAC recommended abandoning the Sustainable Growth Rate (SGR) and replacing it with a 10-year path of statutory fee-schedule updates. This path would be composed of a freeze in current payment levels for primary care and for all other services, annual payment reductions followed by a freeze. MedPAC once again reaffirms this recommendation in its March report. The Academy is presently working with members of Congress on a proposal to replace the SGR, and agrees that the current system is broken but does not agree with MedPAC’s recommendations and signed on to an AMA letter noting concerns. For more details on the Academy’s work to replace the SGR, see the April 2013 issue of the Bulletin.
Payment Adequacy Findings and Recommendations
Another aspect of the March report evaluated payment adequacy for care, services, and equipment and decides whether or not to recommend an increase, maintenance, or a decrease to payments provided to Medicare beneficiaries. In previous reports, MedPAC has called for an equalizing of payment rates for office visits provided in outpatient departments and physician offices. This is based on variations in payments between the sites of service, and the Commission’s belief that Medicare can achieve savings by equalizing payment rates. In the March 2013 report, MedPAC reiterated this recommendation.
MedPAC also evaluated payment levels and the influences they have on beneficiary care and access. In the 2013 report MedPAC recommends increasing payment rates for inpatient and outpatient services in 2014 by one percent, based on an analysis of these factors. The report stipulates ASC payments and access are adequate for beneficiaries, but growth has slowed. MedPAC therefore recommended eliminating an update to payment rates in 2014 until Congress requires ASCs to begin reporting cost data to CMS.
Health Policy staff will continue to attend and monitor MedPAC meetings regularly for any policies or recommendations that affect Academy members. If you have any questions about MedPAC, or its recommendations, email the Health Policy team at healthpolicy@entnet.org.
New CPT Assistant: See pages 40-42 in print edition
As many members know, CPT® Assistant is a product developed by the American Medical Association (AMA) and is a fully-searchable newsletter that includes more than 20 years of historical reference materials approved by the AMA CPT® Editorial Panel. Monthly issues are made available to subscribers that provide clarity on coding issues as well as accurate and reliable coding tips and interpretations. In special circumstances, the AMA grants permission to medical specialty societies, such as the AAO-HNS, to reproduce CPT® Assistant articles that are relevant to a specific specialty, or set of sub-specialties. As such, we are reproducing the following CPT® Assistant article on Thyroidectomy and Parathyroidectomy, printed in the December 2012 CPT® Assistant newsletter, to apprise members of appropriate coding for these services. Members with questions about the article should contact us at: healthpolicy@entnet.org
CPT® Assistant article on Thyroidectomy and Parathyroidectomy