Nonprofit providers would receive 7% more in Medicare payments on average, according to draft estimates of a new payment system under consideration by the Medicare Payment Advisory Commission.
The American Association of Homes and Services for the Aging, which exclusively represents nonprofit providers, quickly praised MedPAC’s considerations, which took place at a meeting late last week.
If the new payment system were adopted, Medicare reimbursements “would shift and – among other things – recognize higher costs not-for-profit nursing homes face,” according to an AAHSA statement. Examples in the report from MedPAC, Congress’ advisory panel, said skilled nursing facilities would average payments 7% higher.
In contrast, payments to for-profits – on average — could drop under the plan, signaling that the proposal is likely to face stiff opposition from the strong for-profit lobby.
“We appreciate MedPAC’s continued diligence in refining the nursing home Medicare payment system,” said Larry Minnix, AAHSA’s president and CEO. “We hope that Congress will give due attention to this thoughtful work on MedPAC’s part.”
