Among what may be considered the many controversial new provisions of the Patient Protection and Affordable Care Act, or PPACA, Congress created a new entity called the Independent Payment Advisory Board. The purpose of the board, according to the legislation, is to “reduce the per capita rate of growth in Medicare spending.”

The board does not replace the Medicare Payment Advisory Commission (MedPAC), which is the current independent congressional agency charged with advising Congress on issues affecting the Medicare program. MedPAC currently submits annual recommendations to Congress, but has no decision–making authority, does not need to meet budgetary targets, nor does Congress have to do what MedPAC recommends. However, the board is charged with developing proposals on Medicare spending issues and in doing so must work in consultation with MedPAC. Under PPACA, the board is given much greater decision-making authority and power than MedPAC. Due to the great statutory authority given to it, it is important to understand the board’s role in this new era of health care reform.

The Creation of the Board

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