Medicare Payment Advisory Commission (MedPAC) March 2014 Report to Congress

March 27, 2014

Pardon Our Dust

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FFS Sectors addressed:

  • Inpatient and outpatient hospitals
  • Physicians and other health professionals
  • Ambulatory surgical centers (ASCs)
  • Outpatient dialysis
  • Skilled nursing facilities (SNFs)
  • Home health agencies
  • Inpatient rehabilitation facilities
  • Long-term care hospitals
  • Hospice

MA Part C recommendations:

  • The Congress should direct the Secretary to determine payments for employer-group Medicare Advantage plans in a manner more consistent with the determination of payments for comparable non-employer group plans.
  • The Congress should include the Medicare hospice benefit in the Medicare Advantage benefits package beginning 2016
  • MA Part C recommendations:

Medicare Part D prescription drug program status:

  • In 2013, about 68 percent of Medicare beneficiaries (over 35 million beneficiaries) were enrolled in Part D plans. An additional 6 percent received their drug coverage through employer-sponsored plans that receive Medicare’s retiree drug subsidy. Among Part D plan enrollees, 11.2 million individuals (about 32 percent) received the low-income subsidy (LIS).
  • About 64 percent of Part D enrollees are in stand-alone prescription drug plans (PDPs); the rest are in Medicare Advantage-Prescription Drug plans (MA-PDs).
  • The number of plan offerings remained stable between 2013 and 2014, with a modest increase in PDP offerings and slightly fewer MA-PDs. Beneficiaries will continue to have between 28 and 39 PDPs to choose from in their region, depending on where they live, along with many MA-PDs.

For a full summary, or to view the full report, please visit

In addition, on March 6-7, 2014, MedPAC met to discuss select policy initiatives. The March MedPAC meeting was divided into six sessions. For more details, download our summary.

If you have any questions, please contact Stephanie Kennan, Senior Vice President, or Brian Looser, Assistant Vice President, at McGuireWoods Consulting.

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