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June 30, 2023

MedPAC June 2023 Report Recommends Changing Medicare Advantage Benefits and Payment Policies

On June 15, 2023, MedPAC issued a report to Congress with several recommendations for revising Medicare Advantage (MA) benefits and payment policies. Organized in ten distinct chapters, the report includes recommendations for addressing drug prices under Part B and rebates under Part D, standardizing benefits across MA plans, addressing disparities in outcomes for beneficiaries with different social risks, aligning fee-for-service payment rates across ambulatory settings, and reforming the Medicare wage index systems. The report also includes reports on the use of telehealth services during the public health emergency and evaluation of a prototype design of a uniform prospective payment system for post-acute care providers. The American Hospital Association has issued a press release opposing certain MedPAC recommendations, including the adoption of additional site-neutral payment policies for certain outpatient services and a proposal to revise drug prices under Part B.

This report follows MedPAC’s March 15 report to Congress, which focused on addressing payment and coding differences between MA and Medicare fee-for-service and offered recommendations for improving the quality bonus program. 

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