MedPAC Says Current Payments Encourage ‘Unnecessary’ Post-Acute Care

The Medicare Payment Advisory Commission (MedPAC) says current Medicare policy on post-acute care (PAC) payments encourages unnecessary utilization. PAC includes skilled nursing facilities (SNFs), home health provider organizations, inpatient rehabilitation facilities (IRFs), and long-term care hospitals (LTCHs). In 2015, the fee-for-service (FFS) program Medicare program spending on PAC services totaled $60 billion.

Over the past seven years, MedPAC has recommended that the Centers for Medicare & Medicaid Services (CMS) make a variety of payment changes, most notably eliminating market basket updates for skilled nursing provider organizations. CMS has not adopted the recommendations. MedPAC estimates that inaction . . .