Last week The Medicare Payment Advisory Commission approved a recommendation that would increase reimbursements to primary care physicians by 1.1 percent in 2010 and give hospitals a full market basket update for both inpatient and outpatient care. The commission also recommended reducing payments to home health agencies and increasing payments to long-term care hospitals and dialysis centers, according to CQ Healthbeat.

In July, under provisions in the Medicare Improvements for Patients and Providers Act, Congress replaced a scheduled 10.6 percent cut for physicians with a payment freeze for the rest of 2008 and the 1.1 percent pay hike. Another bill canceling a scheduled pay cut for physicians due in 2010 is expected to be considered this year. MedPAC will include its recommendations in a report to Congress in March.