From MedPAC to IMAC: Obama would hand Medicare pay rate decisions to new independent council

From MedPAC to IMAC: Obama would hand Medicare pay rate decisions to new independent council
From MedPAC to IMAC: Obama would hand Medicare pay rate decisions to new independent council
The Obama administration has begun the process of shifting control over Medicare rate adjustments for nursing homes, hospice and other providers away from Congress and toward a new, five-member independent executive agency, according to recent reports.

According to draft legislation being written by the White House, the proposed agency, the Independent Medicare Advisory Council, would comprise five president appointed, congressionally approved members, usually physicians or others with special medical expertise, reports Politico.com. The agency's primary role would be to set payment rates for Medicare Part A and Part B, which it would do through issuance of two annual reports. Congress could choose to block these proposals within 30 days, and the president would retain an up-or-down veto power over the agency, according to Politico. 

The Medicare Payment Advisory Commission currently acts only as an advisory body to congress. In its most recent suggestion to congress, MedPAC recommended freezing rates for skilled nursing facilities and cutting reimbursements to home health agencies by 5.5% (McKnight's, 1/12). By giving a new commission authority to implement the changes it recommends, the White House could potentially damage the financial stability of SNFs and other long-term care agencies, long-term care provider advocates say.

For more on this topic, see our May 29 issue of The Editors' Blog.  

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