Given the high and rising costs of health care, a number of bold policy changes will be needed to assure long-term affordability and sustainability. In this context, fully adjusting for MA coding practices that result in overpayment could be considered an obvious option, particularly because this problem is well known and adjustments are already made they are just inadequate.
1We also discuss the Medicare Payment Advisory Commission’s (MedPAC) method for estimating coding intensity and develop a range of possible Medicare savings.Īddressing this problem would improve the solvency of the Medicare trust fund and reduce the federal budget deficit. Reduce the federal budget deficit by a range of $207 to $372 billionĪs part of the Health Savers Initiative, this paper presents a simple method to adjust for coding intensity that was discussed by CMS in 2015 and further developed and analyzed by Professor Richard Kronick of the University of California at San Diego.Reduce premiums for Medicare beneficiaries by a range of $32 to $57 billion.Reduce net Medicare spending by a range of $198 to $355 billion, with just over half the savings accruing to the Medicare Part A Trust Fund.Over the next decade (2021-2030), policies to adjust MA payments more accurately for coding intensity could:
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