The Medicare Payment Advisory Commission (MadPAC) issued its March report to Congress, detailing its fee-for-service payment recommendations for fiscal year 2009. The recommendations include increasing inpatient and outpatient payments by the projected rate of increase in the hospital market basket index, concurrent with implementing a quality incentive payment program. In addition, the recommendations would reduce the indirect medical education adjustment by 1 percentage point to 4.5%; freeze payment rates for skilled nursing facilities, home health agencies and inpatient rehabilitation facilities; and increase long-term care hospital payments by market basket minus 1.5 percentage points for productivity growth. The commission also recommended that Congress update 2008 payments for physician services by the projected increase in input prices minus 1.5 percentage points for productivity growth.

The full report can be found at http://www.medpac.gov/documents/Mar08_EntireReport.pdf.