In his speech last week, the president offered few specifics on his proposal to strengthen the ability of the Independent Payment Advisory Board to keep Medicare costs in check. Under the reform law, the board has the power to make tough decisions without being affected by legislative politics, starting in 2015. The board’s recommendations would be implemented if the per capita growth rate for Medicare exceeded a set target. Congress could not override the recommendations unless it enacted alternate legislation that achieved the same spending target through a different mechanism and passed the alternative in a fast-track legislative process.
Republicans call the payment board an attempt to ration healthcare, and a growing list of Democrats opposes the board, too, arguing that Congress needs to stay involved in healthcare pricing decisions. Among Democrats, Reps. Allyson Schwartz (D-Pa.), Shelley Berkley (D-Nev.), Michael Capuano (D-Mass.) and Larry Kissell (D-N.C.) want the board abolished. “It’s our constitutional duty, as members of Congress, to take responsibility for Medicare and not turn decisions over to a board,” Rep. Schwartz said.
Seventy-five healthcare provider groups, including the AHA, also want the board abolished. If the board has to cut costs, its likely target would be provider payments, since the law bars it from deciding to “ration health care,” raise revenues, or increase Medicare beneficiaries’ out-of-pocket payments.
Read the New York Times report on healthcare reform.
Read more coverage of the Independent Payment Advisory Board:
– Obama’s Plan to Reduce Deficit Will Preserve Medicare, Medicaid But Includes “Tough Cuts”
– GOP Senators Reintroduce Bill to Abolish Rate-Setting Panel
– Two More Democrats Join GOP Against Independent Payment Advisory Board
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