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MedPAC calls for some fee schedule increases

Rehab Regs, January 20, 2005

The Medicare Payment Advisory Commission (MedPAC) recommended that Congress increase Medicare payments to physical therapists and other providers under the Part B physician fee schedule by 2.7% in 2006, according to PT Bulletin Online. The recommendation was made last week, and unless Congress intervenes this year, payments under the Medicare fee schedule will instead be cut by approximately 5% due to formula flaws intended to adjust payment to control the volume of provider services. MedPAC also recommended eliminating 2006 payment updates for Medicare home health and skilled nursing facility payment, reported PT Bulletin Online. The commission concluded that beneficiaries have adequate access to services and most providers have positive profit margins, while Medicare services are increasing in both volume and cost. The recommendations will be included in MedPAC's annual report to Congress on Medicare payment policies that will be released in March.

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