On June 15, 2009, the Medicare Payment Advisory Commission (MedPAC) released its June 2009 Report to Congress: Improving Incentives in the Medicare Program (Report).

In the Report, MedPAC focuses on how certain incentives could be changed to strengthen the Medicare program and promote quality care for its beneficiaries. In brief, MedPAC addresses: Click title to read more…

• Graduate medical education.  MedPAC examines how medical education could be structured to better support the future needs of the Medicare program by promoting coordinated care, quality improvement and judicious use of resources.
• Accountable care organizations. MedPAC examines how accountable care organizations (ACO) could promote care coordination and potentially increase quality and lower cost growth.  In doing so, MedPAC discusses 2 ACO models, one in which providers volunteer to form an ACO and one in which participation is mandatory.
• Physician resource use measurement. Among other things, MedPAC proposes several policy principles to guide Medicare’s physician resource use measurement program.

In addition, MedPAC presents findings on the impact of physician self-referrals and the use of imaging services, Medicare payment systems and follow-on biologics, and improving Medicare’s benefit design.

The Report also satisfies 2 mandated reports to Congress.  First, MedPAC reports on different approaches to reforming Medicare Advantage payments.  Second, MedPAC describes the current state of Medicare’s demonstration research on the care management of chronic conditions and discusses strategies that may enable the Medicare program to accomplish cost saving goals more effectively.

Finally, MedPAC concludes that the Centers for Medicare & Medicaid Services’ preliminary estimate of a -21.5 percent update for physician services for 2010 is accurate. Click here to view original article.