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MedPAC Releases June Report on Benefit Redesign, Dual Eligibles, Care Coordination

June 22, 2012—The Medicare Payment Advisory Commission (MedPAC) June 15 issued its June 2012 Report to the Congress: Medicare and the Health Care Delivery System.  The report discusses issues related to Medicare’s benefit design, care coordination in fee-for service Medicare, care coordination programs for dual-eligible beneficiaries, and risk adjustment in the Medicare Advantage Program.  It also includes congressionally mandated reports to Congress on care for beneficiaries in rural areas and on Medicare’s payment for home infusion.

The report contains specific recommendations on how Congress should redesign the current Medicare benefit, including the establishment of an out-of-pocket maximum amount, deductibles for Part A and Part B services, and an additional charge on supplemental insurance.  With respect to dual-eligible beneficiaries, who are eligible for both Medicare and Medicaid benefits, MedPAC also made recommendations to improve the Program for All-Inclusive Care for the Elderly (PACE).

Additionally, the House Ways and Means Subcommittee on Health June 19 held a hearing to examine the recommendations, where MedPAC Chair Glen Hackbarth, J.D., testified. Health Subcommittee Chair Wally Herger (R-Calif.) opened the hearing, saying, “I look forward to hearing more about MedPAC’s recommendation on how to design a new benefit structure that meets and reflects the health care needs of today’s seniors rather than remaining trapped in the 1960s.”

In his testimony, Chairman Hackbarth explained that MedPAC’s report “focuses on providers and their payment incentives, how beneficiaries view the Medicare program, and how they make decisions about their health care are vital to the program’s success. Aligning incentives for beneficiaries and providers and the design of the program has the potential to improve health, to improve the experience of health care provided through Medicare, and to control costs for the beneficiary and the taxpayer alike.”


Len Marquez
Director, Government Relations
Telephone: 202-862-6281


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Washington Highlights, a weekly electronic newsletter, features brief updates on the latest legislative and regulatory activities affecting medical schools and teaching hospitals.

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Jason Kleinman
Sr. Legislative Analyst, Govt. Relations
Telephone: 202-903-0806