Medicare generally pays different rates for the same service depending on where it is provided. Site-neutrality is the policy of having Medicare Part B pay the same amount for the same service with the same case-mix regardless of where the service is provided. Site Neutral Payments and Medicare Part B This paper discusses what site-neutral payments are, how they work, the current extent of their use in Part B, and their fiscal impact on the program. As discussed at a recent hearing of the House Energy and Commerce Committee’s Subcommittee on Health, site-neutral payments in Medicare Part B provide an avenue for reducing program costs without hurting beneficiary care. Legislation is required to make changes to current Part B payments and enact site-neutral payment policies.Īs Medicare spending continues to increase, policymakers have been routinely focused on ways to reduce costs while preserving access to care for beneficiaries.health care system up to $672 billion while reducing the national deficit by a potential $279 billion, and potentially reduce the Part A trust fund’s shortfall. Over 10 years, site-neutral payment policies could save Medicare up to $153 billion, beneficiaries up to $94 billion, the greater U.S. Site-neutrality is the policy of having Medicare Part B pay the same amount for the same outpatient services regardless of whether the service is performed in a hospital, ambulatory surgical center, or physician’s office.
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