This week the Medicare Payment Advisory Commission (MedPAC) laid out its recommendations for the 2011 Medicare physician update (we haven’t survived 2010 yet!). The draft recommendation was that Congress should update payments for physician services in 2011 by 1 percent, and that while this would increase overall Medicare spending as well as increasing beneficiary cost sharing, it would help maintain supply and access to physician services. However, a 1% increase isn’t going to cause a flood of new med school applicants!

The Medicare Payment Advisory Commission (MedPAC) also heard an update on enrollment and payment data for Medicare Advantage (MA) plans. MedPAC staff said enrollment grew to almost 11 million over the previous year and now accounts for 1 in 4 Medicare beneficiaries. Plans offerings continue to be widespread, but choices of private fee-for-service (PFFS) plans shrank as impending networking requirements began to lead to market withdrawals from some plan sponsors. With respect to payments, MedPAC’s preliminary estimate is that 2010 payments will average 113% of fee-for-service – though that figure could be adjusted lower if Congress prevents a cut in physician payments and thereby increases Medicare FFS spending. The discussion comes as Congress is considering sizable cuts to MA as part of health reform

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