SLIGHT RISE SEEN IN MEDICARE RATE
The Administration will soon propose an increase of one-half of 1 percent in Medicare payments to hospitals for the treatment of elderly or disabled patients, Federal health officials said today. The proposed increase, for the fiscal year that starts Oct. 1, is substantially less than the increase needed to keep pace with inflation, according to hospital administrators and advocates for the elderly. But officials at the Office of Management and Budget, who spoke on condition that they not be identified, contend that data on hospital costs would actually justify a freeze or a slight reduction in the payments to hospitals. The new rates are to be announced later this week and published Monday in The Federal Register for public comment. The final rules must be issued by Sept. 1 and would apply to all Medicare patients discharged from hospitals after Oct. 1.