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42 U.S. Code § 1395b-6. Medicare Payment Advisory Commission
(a) Establishment
There is hereby established as an agency of Congress the Medicare Payment Advisory Commission (in this section referred to as the “Commission”).
(b) Duties
(1) Review of payment policies and annual reportsThe Commission shall—
(A)
review payment policies under this subchapter, including the topics described in paragraph (2);
(B)
make recommendations to Congress concerning such payment policies;
(C)
by not later than March 15,[1] submit a report to Congress containing the results of such reviews and its recommendations concerning such policies; and
(D)
by not later than June 15 of each year, submit a report to Congress containing an examination of issues affecting the medicare program, including the implications of changes in health care delivery in the United States and in the market for health care services on the medicare program and including a review of the estimate of the conversion factor submitted under section 1395w–4(d)(1)(E)(ii) of this title, and (beginning with 2012) containing an examination of the topics described in paragraph (9), to the extent feasible.
(2) Specific topics to be reviewed
(A) Medicare+Choice programSpecifically, the Commission shall review, with respect to the Medicare+Choice program under part C, the following:
(i)
The methodology for making payment to plans under such program, including the making of differential payments and the distribution of differential updates among different payment areas.
(ii)
The mechanisms used to adjust payments for risk and the need to adjust such mechanisms to take into account health status of beneficiaries.
(iii)
The implications of risk selection both among Medicare+Choice organizations and between the Medicare+Choice option and the original medicare fee-for-service option.
(iv)
The development and implementation of mechanisms to assure the quality of care for those enrolled with Medicare+ÐChoice organizations.
(v)
The impact of the Medicare+Choice program on access to care for medicare beneficiaries.
(vi)
Other major issues in implementation and further development of the Medicare+Choice program.
(B) Original medicare fee-for-service systemSpecifically, the Commission shall review payment policies under parts A and B, including—
(i)
the factors affecting expenditures for the efficient provision of services in different sectors, including the process for updating hospital, skilled nursing facility, physician, and other fees,
(ii)
payment methodologies, and
(iii)
their relationship to access and quality of care for medicare beneficiaries.
(C) Interaction of medicare payment policies with health care delivery generally
Specifically, the Commission shall review the effect of payment policies under this subchapter on the delivery of health care services other than under this subchapter and assess the implications of changes in health care delivery in the United States and in the general market for health care services on the medicare program.