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
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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Outdated provider directories are “completely unacceptable” and harm beneficiaries
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