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Advising the Congress on Medicare issues
MedPAC > Recommendations > Rebalancing Medicare Advantage benchmark policy

Rebalancing Medicare Advantage benchmark policy

June 15, 2021

The Congress should replace the current Medicare Advantage (MA) benchmark policy with a new MA benchmark policy that applies:

  • a relatively equal blend of per capita local area fee-for-service (FFS) spending with price-standardized per capita national FFS spending;
  • a rebate of at least 75 percent;
  • a discount rate of at least 2 percent; and
  • the Commission’s prior MA benchmark recommendations—using geographic markets as payment areas, using the FFS population with both Part A and Part B in benchmarks, and eliminating the current pre–Affordable Care Act cap on benchmarks.

Appeared in: June 2021 - Chapter 1

Topics: Delivery system reforms and Part C (Medicare Advantage).