November 30, 2001

MedPAC Discusses Outpatient Technology Payments

As provider groups continued to deal with payment reductions for new technologies (see related article) MedPAC met on Nov. 15 to discuss potential improvements in the payment system that could be implemented over the long-term.

Options discussed included continuing or modifying pass-through payments (e.g., excluding items whose costs are reflected in base rates, establishing national rates), creating a separate fee schedule for technology, and phasing out pass-through payments. While the commissioners did not identify their preferences, they agreed that any new payment methodology should lessen disparities between inpatient and outpatient payments and reduce the redistribution of payments between manufacturers and hospitals. The Commission also agreed to discuss and clarify the role Medicare should play in financing the development of new technologies at their next meeting.

Information: Karen Fisher, AAMC Division of Health Care Affairs, 202-828-0490.