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MedPAC urges fix for charge compression

This article was originally published in The Gray Sheet

Executive Summary

CMS should immediately correct for charge compression, a payment calculation phenomenon that generally leads to the undervaluing of high-cost technology, says the Medicare Payment Advisory Commission in Sept. 14 1comments to the agency. Despite similar pressure from device stakeholders to use regression analysis for a near-term fix to the problem, CMS said in its July proposal for 2008 hospital outpatient payments that it wants to further study the approach (2"The Gray Sheet" July 23, 2007, p. 17). "The issue of charge compression is serious enough that CMS should move forward with this imperfect solution," MedPAC writes. CMS will finalize the decision by Nov. 1
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