Fierce Health Payers June 15, 2021
The Medicare Payment Advisory Commission (MedPAC) wants to change how Medicare Advantage (MA) benchmarks are calculated due to concerns that plans have not yielded net savings for Medicare.
The recommendation, outlined in a report to Congress released Tuesday (PDF), aims to address a disparity where Medicare pays 4% more for beneficiaries enrolled in MA plans compared to similar enrollees in fee-for-service.
“Despite the apparently relative efficiency of MA, no iteration of private plan contracting has yielded net aggregate savings for Medicare,” a release on the report said.
MedPAC wants to change how the MA benchmark, which is the maximum payment amount for plans, is adjusted for geographic variation.
Currently, Medicare pays MA plans more if they cover an area with...
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