MedPAC: No Change to ASC Payments in 2014

The Medicare Payment Advisory Committee's proposal to increase ASC payment rates half a percentage point may not have seemed like much when it was announced last month, but its latest recommendation is nothing at all.

At a January 10 meeting, the agency approved a recommendation for no change to Medicare's ASC payment rates for calendar year 2014. It also recommended a requirement for ASCs to report cost data to the federal insurer.

A proposed 1% increase for hospitals' Medicare payment rates remained unchanged. The proposals are expected to come up for a vote later this month.

According to a press release from the Outpatient Ophthalmic Surgery Society, the agency noted that increased demand for services and ready access to capital negate the need for payment increases to ASCs.

While the OOSS argues that ASC cost reporting would be "unreasonably burdensome," MedPAC suggests that its use would assist in developing more accurate payment updates.

It's about time, say ASC observers. "As MedPAC itself has acknowledged, there is a growing disparity between HOPD and ASC payment rates," remarks ASC Association Board President Nap Gary. "To recommend a 1% increase for HOPDs and nothing for ASCs only makes a bad problem worse."

Recommendations from MedPAC, an independent legislative agency that advises Congress on Medicare issues, are not binding when presented to Congress or the Centers for Medicare and Medicaid Services.

David Bernard