Summary
This week, the Medicare Payment Advisory Commission (MedPAC) kicks of the 2022-2023 meeting cycle with sessions on Medicare Advantage (MA) benefit standardization, wage index, Part B drugs, and other topics. In addition to serving as a public forum for commissioners to formulate recommendations to Congress in their March and June 2023 reports, MedPAC meetings also signal to the Administration which policy issues to prioritize and, if possible, address through rulemaking or guidance.
Commissioners will begin with a discussion on the context for the Medicare program, which will shape the context chapter of the March 2023 report to Congress and serve as background for all discussions this cycle. Each year, the context chapter highlights key national trends in health care spending for the Medicare program in particular and the country as a whole (WHG summary of March 2022 report). Medicare Trustees estimate that the Hospital Insurance Trust Fund (which pays for Medicare Part A services) will be depleted by 2028 (previously estimated to be 2026) (WHG summary).
Commissioners also examine the factors that contribute to Medicare spending growth, such as evolving demographics and growth in the volume and intensity of services provided. They are also expected to discuss the impact of the COVID-19 pandemic on the Medicare program. The COVID-19 public health emergency is currently set to expire on October 13, 2022, but we anticipate that the Biden Administration will extend the PHE another 90 days to January 11, 2023.