The Medicare Payment Advisory Commission (MedPAC) met January 10 – 11 to vote on Medicare payment policy recommendations that will be included in its annual report to Congress to be issued in March 2008. Among other things, the panel voted to recommend a freeze in Medicare skilled nursing facility, home health agency, and inpatient rehabilitation facility rates, a 1.6 percent update in LTCH rates, a 1.1 percent increase in physician payments, and a 1 percentage point reduction in hospital indirect medical education payments. Lawmakers are expected to consider MedPAC’s recommendations as they attempt to craft legislation that would avert a 10.1 percent cut in Medicare physician fee schedule payments that is scheduled to go into effect July 1, 2008. For more information, see