Modern Healthcare

The Medicare Payment Advisory Commission unanimousl­y backed recommenda­tions that would reduce Medicare Advantage plan reimbursem­ent by at least $200 million.

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The suggestion­s involve allowing the HHS secretary to eliminate benchmark caps and the “double bonuses” now received by Medicare Advantage plans. The current payment formula uses outdated spending calculatio­ns from 2010, according to Scott Harrison, a principal policy analyst at MedPAC. The Affordable Care Act allows some counties to receive double quality bonuses if they are in metropolit­an areas with at least 250,000 people. About 19% of Advantage enrollees are in double-bonus counties, and 19% are in capped counties. MedPAC will formally vote on the recommenda­tions in January and present its findings to Congress by March.

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