AHA cautions against the interpretation of MedPAC report on Medicare Advantage enrollment and provider finances

The Medicare Payment Advisory Commission June 15 released its June report to Congress that estimated the association between Medicare Advantage enrollment and hospital and post-acute care provider finances. The commission found no evidence of a statistically significant association between MA penetration and providers’ all-payer margins. The AHA expressed significant concerns with the validity of the findings, saying that it previously identified several data and methodological limitations. The AHA said that no conclusions can be drawn between providers’ all-payer margins, revenues, and costs and MA penetration.

“We appreciate that the commission is interested in examining the role that Medicare Advantage plays in hospital finances,” said Molly Smith, AHA group vice president of public policy. “As the commission itself has found, MA has not delivered on its intent to reduce Medicare spending; and yet, despite taxpayers paying billions more to these plans, they routinely delay and deny patients care. In addition, both our own analyses and external evidence show that MA imposes materially greater, and inappropriate, administrative burdens on hospitals and the beneficiaries they serve as compared to Traditional Medicare. We urge MedPAC to carefully consider the role of MA in driving up hospitals’ costs and Medicare spending to strengthen the program so that it works for patients and the providers who care for them.”