Does the Public Need More Time to Weigh in on New Medicare Advantage Pay Rates? (H.R. 2507)

What is H.R. 2507?

(Updated July 19, 2017)

This bill would expand the comment period on the annual evaluation of payment rates under Medicare Advantage. 

Expanding the comment period would begin before the 2017 payment rates for Medicare Advantage are evaluated and determined. Before April 1 of the preceding year (so for 2017 — that’s April, 2016), the Secretary of Health and Human Services would be required to announce the annual Medicare Advantage rates by region, the factors used in determining those rates, and region-specific benchmarks. 

Before announcing those rates, the preceding comment period would be expanded to 60 days before the announcement. Under current law the public only has 45 days.

Argument in favor

Medicare Advantage accounts for roughly 1/3 of total spending under Medicare, and payment rates impact many seniors who rely on these programs for their health care needs. The more public input, the better.

Argument opposed

Extending public comment period is an empty gesture that probably won’t have a real substantial effect on the final Medicare Advantage payment rates.

Impact

Medicare Advantage subscribers, health care providers, and other stakeholders that would provide input; the Secretary of Health and Human Services.

Cost of H.R. 2507

A CBO cost estimate is unavailable.

Additional Info

In-Depth: Medicare Advantage plans are a type of Medicare health plan that are offered by a private company that contracts with Medicare to provide Part A and Part B benefits. These plans usually offer prescription drug coverage, and most Medicare services are covered through these plans and aren’t paid for under Original Medicare.

According to the Kaiser Family Foundation, in 2014 there were about 15.7 million people enrolled in Medicare Advantage plans, and the program accounts for 30 percent of total Medicare spending.

This bill was passed by the House Ways and Means Committee via voice vote.

Media:

• House Ways and Means Committee Press Release
• CBO Cost Estimate
• McGuire Woods Consulting
• Strategic Health Care
• AHIP Advantage (In Favor)
• Hospital & Healthsystem Association (In Favor)
  

Summary by Eric Revell
(Photo Credit: Flickr user Adalie Plain)