Amended by section 10320 of the Manager’s Amendment. Establishes a new entity that, starting in 2014, will make recommendations and develop proposals to reduce Medicare spending to meet certain targets and improve quality. The IPAB is also required to make recommendations regarding the private healthcare sector every two years, starting in 2015.
Prior to 2018, target Medicare spending growth is equal to the average of the urban consumer price index (CPI) and urban medical care component of CPI. In 2018 and beyond, the target is GDP+1. IPAB recommendations are to be delivered to MedPAC and HHS by September 1, with a final proposal submitted to Congress by the following January 15. If Congress fails to act by August 15, HHS is obligated to implement them.
Prior to 2020, hospitals and several other providers are exempted from IPAB’s recommendations and IPAB may never change beneficiary premiums or cost-sharing, benefits or eligibility. IPAB is not required to submit proposals if spending is less than targeted.
IPAB is to have 15 members, appointed by the President and confirmed by the Senate, who are to have staggered six-year terms.