MedPAC Calls for Medicare Payment Cuts and Repeal of the SGR

March 16, 2012

In its annual review to Congress, issued on March 15, the Medicare Payment Advisory Commission (MedPAC) advised that payment rates for the inpatient and outpatient prospective payment systems be increased by 1% in 2013.

The commission also called on Congress to update ASC payment rates by 0.5% for 2013. Additionally, it advises that ASCs be required to submit cost data and to implement a value-based purchasing program by 2016.

Finally, MedPAC called for the repeal of the sustainable growth rate (SGR) system and for its replacement with a 10-year path of statutory fee-schedule updates. This path would include annual payment reductions in all services except for primary care of 5.9% for three years, followed by a freeze.