Insights,

ADVI Analysis: MedPAC November 2023 Meeting

MedPAC held a meeting on November 2-3, 2023 (link). The following relevant topics were discussed:

  • Medicare coverage of and payment for software as a medical service: An overview
  • Evaluating access in Medicare Advantage: Network management and prior authorization

ADVI Angle

Key takeaways from the November meeting include:

  • Medicare coverage of and payment for software as a medical service: An overview
    • MedPAC staff provided an overview of current Medicare payment and coverage for software as a medical service (SaMS) and suggested areas for Commissioner discussion.
    • Commissioners largely agreed that:
      • It would be useful to track SaMS utilization
      • Payment for SaMS:
        • Should incentivize the development of devices that reduce costs
        • Is preferable through bundles vs fee-for-service
        • Should be structured to avoid induced demand
      • The new-technology add-on payment (NTAP) may incentivize higher priced products.
  • Evaluating access in Medicare Advantage: Network management and prior authorization
    • MedPAC staff provided an overview of network management and prior authorization (PA) in Medicare Advantage (MA).
    • Commissioners largely agreed that:
      • While PA is not always a bad thing, there are issues with its use in MA
      • Data points such as network adequacy, denial rates, and use of out-of-network care should be included in public measures such as Star Ratings. 
      • Outdated provider directories are “completely unacceptable” and harm beneficiaries

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Allison Schneider

Senior Manager