MedPAC recommends cutting nursing home, home health pay to boost physician fees

The Medicare Payment Advisory Commission has advised Congress to reduce Medicare payments to nursing homes and home health agencies in order to fund higher reimbursement rates for physicians. MedPAC’s annual report argues the post-acute care sector has sufficient margins to absorb cuts, while physician practices face unsustainable financial pressure. The commission’s recommendations are not binding but carry weight in congressional Medicare policy debates. This signals continued tension between different provider segments over a fixed Medicare budget, with physicians lobbying for relief at the expense of other services.