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MedPAC meets to discuss Physician Payment Inadequacy

January 13, 2023

MedPAC drafted two recommendations to address growing concerns on physician payments:

  • For CY 2024, Congress should update the 2023 Medicare base payment rate for physician and other health professional services by 50% of the projected increase (3.9% in 2023, 2.9% in 2024) in the Medicare Economic Index (MEI).
  • Congress should enact a non-budget-neutral add-on payment, not subject to beneficiary cost sharing, under the physician fee schedule for services provided to low-income Medicare beneficiaries. These add-on payments should equal a clinician’s allowed charges for these beneficiaries multiplied by:
    • 15% for primary care clinicians
    • 5% for non-primary care

The commission discussed the rising input costs as a concern and the need for Medicare to support clinicians who treat beneficiaries with low incomes. Targeted financial support for safety-net clinicians does not exist in the current physician fee schedule.

Hospitals: MedPAC recommends a 1% increase over current Medicare rates and the establishment of the Medicare Safety Net Index (MSNI).

What’s Next: Congress only provided physicians partial relief from cuts in the omnibus bill. Is there any appetite in the new Congress for these recommended increases?

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