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Payment Recommendations for 2021

The Medicare Payment Advisory Commission (MedPAC) is required by law to annually review Medicare payment policies and make recommendations to the Congress.

In its March 2020 report to the Congress, MedPAC makes payment policy recommendations for provider sectors in fee-for-service (FFS).

Fee-For-Service Payment Update Recommendations

To meet its legislative mandate, the principal focus of the March report is MedPAC’s recommendations for annual payment rate adjustments (or “updates”) under Medicare’s various FFS payment systems. MedPAC assesses payment adequacy by examining beneficiary access to care (supply of providers, service use, and access surveys); quality of care; providers’ access to capital; and provider costs and Medicare payments, where available.

MedPAC’s recommendations for the 2021 payment year are listed below. The Congress should:

Hospitals: Inpatient and outpatient services

Physicians and other health professional services

Ambulatory surgical center services

Outpatient dialysis services

Skilled nursing facility services

Home health agency services

Inpatient rehabilitation facility services

Long-term care hospital services

Hospice services


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