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MedPAC looking at increase in Medicare spending

Rehab Private Practice Alert, September 21, 2005

In light of a 60% increase in spending on Medicare outpatient therapy services between 2000 and 2002, the Medicare Payment Advisory Commission (MedPAC) is taking a closer look at what is causing the rapid growth, according to PT Bulletin Online.

Last week, MedPAC discussed plans to examine recent spending trends and convene an expert panel to review practice patterns, alternative payment policies, and the need for better diagnostic and patient assessment information.

The commission, which advises Congress on Medicare policies, also will explore alternatives to the Medicare therapy caps and will devote a full chapter of its June 2006 report to Congress on therapy spending issues.

In comments at last week's hearing, APTA applauded the panel's concerns about the therapy caps and offered to be part of the expert panel to review policy options. APTA will meet with MedPAC staff following the commission's October 6-7 meeting to discuss electronic medical records, patient assessment, and data collection efforts.

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