Medicare Payment Advisory Commission (MedPAC) March 2014 Report To Congress


The Medicare Payment Advisory Commission (MedPAC) is required by law to annually review Medicare payment policies and make recommendations to the Congress. The 2014 report includes payment policy recommendations for 10 of the health care provider sectors in fee-for-service (FFS) Medicare. MedPAC also reviews the status of Medicare Advantage (MA) plans and makes recommendations regarding the Medicare Advantage program (Part C), as well as reviewing the status of prescription drug plans (Part D).

FFS Sectors addressed:

Inpatient and outpatient hospitals Physicians and other health professionals Ambulatory surgical centers (ASCs) Outpatient dialysis Skilled nursing facilities (SNFs) Home health agencies Inpatient rehabilitation facilities Long-term care hospitals Hospice MA Part C recommendations:

The Congress should direct the Secretary to determine payments for employer-group Medicare Advantage plans in a manner more consistent with the determination of payments for comparable non-employer group plans. The Congress should include the Medicare hospice benefit in the Medicare Advantage benefits package beginning 2016 MA Part C recommendations: Medicare Part D prescription drug program status:

In 2013, about 68 percent of Medicare beneficiaries (over 35 million beneficiaries) were enrolled in Part D plans. An additional 6 percent...

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