Too much focus on Medicare margins results in MedPAC’s recommendations ignored every year.
The Medicare Payment Advisory Commission (MedPAC) does a lot of worthwhile research as it relates to health care and Medicare. But the commissioners must get tired of banging their heads against the wall year after year when it comes to their recommendations to Congress for Medicare payments to SNFs.
For years, they have believed Medicare payments to nursing facilities were too high, and every year recommend cuts or no increases. This year was no different. MedPAC recommended no increase in SNF payment rates for two years. This was partly because they believe Medicare margins are too high, and they are able to ignore overall margins because they are only concerned about Medicare. And, they want to wait and see how the revised PPS for SNFs works when it is rolled out. The key word is “when,” as the roll-out is likely to be delayed.
MedPAC also seems to be ignoring some of the financial distress currently hitting SNFs, with one big factor the decrease in rates and length of stay for Medicare Advantage patients. Once again, we suspect Congress will ignore MedPAC’s recommendations, as they should.
