MediFair Act of 2004

MediFair Act of 2004 - Amends title XVIII (Medicare) of the Social Security Act (SSA), as amended by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, to direct the Secretary of Health and Human Services to establish a system for making adjustments to the amount of payment made to entities and individuals for items and services provided under the original Medicare fee-for-service program under parts A (Hospital Insurance) and B (Supplementary Medical Insurance). Requires the Medicare Payment Advisory Commission (MEDPAC) to develop recommendations on policies and practices that would encourage: (1) healthy outcomes and quality care under the Medicare program in States with respect to which payments are reduced under such system; and (2) the efficient use of payments made under the Medicare program in such States.