MedPAC Votes to Recommend PFS Annual Update at April Meeting

The Medicare Payment Advisory Committee (MedPAC) discussed issues relating to the Medicare and Medicare Advantage (MA) programs during its April 10 meeting, including longstanding concerns about the lack of inflationary updates applied to Medicare reimbursement to adequately pay for physician services. MedPAC is an independent congressional agency established to advise Congress about issues affecting the Medicare program.

During the meeting, MedPAC voted to adopt two draft recommendations for inclusion in its June Report to Congress: 

• Congress should replace the current-law updates to the PFS with an annual update based on a portion of the growth in the Medicare Economic Index (MEI), such as MEI minus 1 percentage point. 
• Congress should direct the U.S. Department of Health and Human Services secretary to improve the accuracy of Medicare’s relative payment rates for clinician services by collecting and using timely data that reflects the costs of delivering care. 

MedPAC staff also provided a presentation to commissioners about the use and payment of artificial intelligence via software delivered over the internet. Commissioners said while the Centers for Medicare and Medicaid Services should promote access and innovation, it is important to measure quality and outcomes to determine what additional benefit is being provided to the beneficiaries.

Continuing their work on MA, commissioners discussed the use of supplemental benefits, citing the difficulties in assessing the value provided by the $83 billion Medicare spends on these extra benefits (such as vision, dental and gym memberships). They expressed support for some alternative approaches to potentially standardize payment policies without sacrificing innovation or improvements provided by individualized care.

For more information or if you have questions, contact Kimberly Greck, American College of Radiology® Senior Economic Policy Analyst.