Independent Payment Advisory Board

Write 11 pages thesis on the topic independent payment advisory board of the affordable care act. The Affordable care act (ACA) 2010, had authorized reductions in Medicare spending. however, spending has been rising since then. The independent nature of the board allows submission and implementation of prepositions by the congress, or the HHS secretary without unnecessary political interventions. This paper intends to describe the composition of the reform act, and the effects that arise due to the existing components of the reform. The paper will explore the reform act exposing the possible missing elements and their consequences in relation to health care (Ronai 62). The paper will offer recommendations on areas that may require improvements in order to improve Medicare. Components of the reform act In June 2012, the Supreme Court declared that the Patient protection and Affordable Care Act (ACA) are part of the constitution. The purpose of the law is to improve health care for Americans through a variety of expansions relating to health insurance (Ronai 63). The inclusion of IPAB with health care legislation was for the purpose preventing unnecessary political pressures and influences regarding healthcare budgets. The IPAB is to contain 15 appointees of the president expected to remain in service for a period not exceeding six years. The appointees are to work in accordance to the directions of the senate. The president performs consultations with majority leaders in the senate and the speaker of the House of Representatives, before making fundamental decisions regarding the selection of the appointees. The persons appointed in the Board should involve physicians and other professionals in the health care industry. However, the board is not to contain a majority of persons who have direct involvement in the provision of health care service. The board is not to constitute unemployed as part of the sitting members. The president is accountable for the creation of public disclosures by IPAB members for the purpose of preventing any financial conflicts of interests (Auerbach 2). The reform act requires that by the end of April each year, commencing 2013. the Centers for Medicare and Medicaid Services (CMS) should present an estimate termed as the projected Medicare Growth Rate (PMGR) (Auerbach 3). The enrollee calculation presented assumes that Medicare expenditures rise as more individuals join the program. The estimate thus. emphasizes on the rate of growth of the Medicare expenses (Ronai 65). The presentation of the estimates is the responsibility of the chief actuary of the CMS. The chief actuary is to present computations regarding the expected growth rate for the future. This will include years, 2014 up to 2019. The purpose of this venture will be to determine the target growth rate for a period of about 5 years, which will be the center of two extended inflation rates. There will be a consideration of the Consumer Price Index (CPI), plus the Medicare expenses option which involves the adjustments in prices encountered during the provision of health care such as drug supplies and hospital services (Auerbach 4). From the year 2020 and beyond, the goal for Medicare expenditures will have a connection with the entire growth of the economy and not the initial connection with the rise in prices. The target computation will be in relation to the Gross Domestic Product (GDP) of the country. One percent addition to the GDP will be considered, and measurements on expenditures performed against the extended growth rate.

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