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Advising the Congress on Medicare issues
MedPAC > Recommendations > Hospital inpatient and outpatient services

Hospital inpatient and outpatient services

March 15, 2016

The Congress should direct the Secretary of the Department of Health and Human Services to:

  • update inpatient and outpatient payments by the amount specified in current law;
  • reduce Medicare payment rates for 340B hospitals’ separately payable Part B drugs by 10 percent of the average sales price;
  • direct the program savings from reducing Part B drug payment rates to the Medicare-funded uncompensated care pool; and
  • distribute all uncompensated care payments using data from the Medicare cost reports’ Worksheet S–10. The use of S–10 uncompensated care data should be phased in over three years.

Topics: Drugs, Devices, and Tests and Hospital.