MedPAC suggests recouping overpayments to hospitals

The Medicare Payment Advisory Commission suggested Thursday that Congress should adjust what it pays hospitals for inpatient care in 2011 to recoup overpayments that have come from changes in documentation and coding used by Medicare, according to a report on Modern Healthcare.

At the same time, the commission, known as MedPAC, called for Medicare to increase its payment rates for inpatient and outpatient hospital services at the full rate of inflation, along with establishing a quality incentives program. Currently, the projected increase would be 2.5%, MedPAC researchers stated. But the commission suggested reduction in that to account for a lower indirect medical education payment and to recoup the overpayment. The recommendations are scheduled for a vote at MedPAC's January meeting. (Lubell, 12/10)