Should the Public Have More Time to Comment on New Medicare Advantage Pay Rates? (H.R. 3831)

What is H.R. 3831?

(Updated March 27, 2018)

This bill was enacted on December 18, 2015

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

Medicare Advantage plans are health plans offered by private companies that contract 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.

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 have to announce the annual Medicare Advantage rates by region, the factors used to determine those rates, and region-specific benchmarks. 

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

Argument in favor

Medicare Advantage accounts for roughly a third of total Medicare spending, 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 effect on the final Medicare Advantage payment rates. There needs to be more public commentary to inform the plans before they are presented in the first place.

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. 3831

A CBO Cost estimate is unavailable — however, the CBO did analyze a related bill that accomplishes the same goals and comes from the same sponsor, Rep. Kevin Brady (R-TX). It found that implementing H.R. 2507 would have no impact on the federal budget.

Additional Info

In-Depth: 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.

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 Lisa Yarost)