MedPAC Submits June Report to Congress – Therapy Highlighted [06-22-13]

Filed under: Industry Updates — Editor @ 10:47 am

medpac-dataOn June 14, the Medicare Payment Advisory Commission (“MedPAC”) submitted its annual June report to Congress on Medicare and the Health Care Delivery System. The Commission estimated that Medicare payments to doctors will be cut by 24.4% on January 1, 2014 if Congress does not pass legislation to correct the Sustainable Growth Rate (“SGR”) formula (also known as “doc fix”) before the end of the year.  Other highlights of the report include the Mandated report: Improving Medicare’s payment system for outpatient therapy services.

The Commission found that outpatient therapy services can help Medicare beneficiaries improve their level of function and live independently, but at the same time, Medicare’s outpatient therapy benefit is vulnerable to abuse. Due to the lack of comprehensive coverage guidelines and effective mechanisms to control volume,the use of outpatient therapy varies widely across the country. Medicare spending on outpatient therapy users in the highest spending areas of the country is five times more than that in the lowest spending areas of the country, even after controlling for differences in patients’ health status.

Here are the outpatient therapy recommendations:

MedPac Therapy


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