MedPAC June Report Examines MIPS and Other Medicare Delivery System Topics

June 16, 2017


On June 15, 2017, the Medicare Payment Advisory Commission (MedPAC) released its June 2017 Report to Congress. As part of its mandate from the Congress, each June MedPAC reports on issues affecting the Medicare program as well as broader changes in health care delivery and the market for health care services. This year’s report includes chapters on a wide range of topics:

  • Redesigning the Merit-based Incentive Payment System (MIPS) and strengthening advanced alternative payment models. The Commission indicated concern with the direction the program is taking. The Commission did not have any recommendations but has started to discuss ideas for improvement and potential alternatives to the current MIPS structure. Download the chapter here.
  • Implementing a unified payment system for post-acute care (PAC). The Commission recommends moving to a unified PAC prospective payment system (PPS) that spans the four settings—skilled nursing facilities, home health agencies, inpatient rehabilitation facilities, and long-term care hospitals. Download the chapter here.
  • Reforming Medicare payment for drugs under Part B. The Commission recommends modifying the average sales price system (ASP) and creating and phasing in a voluntary Drug Value Program. Download the chapter here.
  • Payments from drug and device manufacturers to physician and teaching hospitals in 2015. Under the Open Payments program, drug and device manufacturers and group purchasing organizations report information to CMS about payments to physicians and teaching hospitals. Consistent with its 2009 recommendation, MedPAC believes the Open Payment Program should be expanded to include additional providers and organizations that have relationships with manufacturers. Download the chapter here.
  • An overview of the medical device industry. Commissioners provide an introduction to the medical device industry, discuss its role in Medicare, and provide possible directions for policy. Download the chapter here.
  • Provider consolidation. Commissioners consider the current level of provider consolidation and how provider consolidation can affect prices and the potential benefits of provider–insurer consolidation which can occur without increasing costs for taxpayers and beneficiaries. Download the chapter here.

Other topics addressed in the report include using premium support in Medicare; the relationship between physician and other health professional services and other Medicare services (mandated report); stand-alone emergency departments; and hospital and skilled nursing facilities use by Medicare beneficiaries who reside in the nursing home.

The full report is available here.


Report fact sheet is available here.


Report press release is available here.


More information on MedPAC is available here.

For more information visit the McDermottPlus MACRA Resource Center or contact Sheila Madhani at 202-204-1459,

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