Inpatient Facility Coding & Compliance Alert

Question: I heard something about a new physician group being formed by President Obama to take charge of Medicare payment policies. Can you share the details? 

Nebraska Subscriber 

Answer: What you’ve heard is correct to a certain extent, but might not be the final word. 

As part of the Affordable Care Act, President Obama created the Independent Payment Advisory Board (IPAB), a 15-member government agency that had the power to change Medicare policy. Also referred to as a “Super PAC,” the IPAB was considered a stronger version of the Medicare Payment Advisory Commission (MedPAC), which makes recommendations but cannot enact policies.

However, physician groups were quick to decry the IPAB, saying that cuts would be taking place at random and would affect not only medical practices, but also access to patient care. Earlier in 2013, Rep. Phil Roe (R-Tenn.) introduced a bill that would repeal the IPAB. Roe had previously introduced the same bill in Congress last year. Medical groups cheered at the possibility of the IPAB’s dismantling.

“The AMA is pleased that legislation to eliminate the Independent Payment Advisory Board (IPAB) has been introduced in the House,” said AMA President Jeremy Lazarus, MD, in a Jan. 23 statement. “Patients and physicians are still struggling with the frequent threat of drastic cuts from the broken SGR Medicare physician payment formula. IPAB would be another arbitrary system that relies solely on payment cuts.”