President Obama has sent an open letter to Senators Edward M. Kennedy (D-MA) and Max Baucus (D-MT) acknowledging the Senators' efforts on health care reform. Significantly for Medicare, the President's letter also mentions his willingness to a changing role for the Medicare Payment Advisory Commission (MedPAC). MedPAC is an independent Congressional agency established by the Balanced Budget Act of 1997 to advise the U.S. Congress on issues affecting the Medicare program, but does not have power to act upon and implement any recommendations.

"Under this approach," the President's letter states, "MedPAC's recommendations on cost reductions would be adopted unless opposed by a joint resolution of the Congress. This is similar to a process that has been used effectively by a commission charged with closing military bases, and could be a valuable tool to help achieve health care reform in a fiscally responsible way."

President Obama's remarks were part of the overall discussion within the letter of the President's stated commitment to better choices for American's health insurance, support for creation of a health insurance exchange, and admonition that exchange plans should not deny coverage on the basis of a preexisting condition, but should include an affordable basic benefit package that includes prevention, and protection against spiraling health care costs.
Senator John D. Rockefeller IV (D-WV), Chairman of the Senate Finance Subcommittee on Health Care, has expressed approval over the President's remarks. Senator Rockefeller has introduced legislation in the past month, The MedPAC Reform Act of 2009, to expand MedPAC's role by creating an independent executive branch agency, similar to the Federal Reserve. MedPAC under this legislation would be able to determine and implement Medicare reimbursement policies.

"President Obama has outlined a vision for health care reform that I believe we can achieve this year," said Senator Rockefeller in a press release on his website. "I am especially encouraged by the President's interest in an expanded role for MedPAC, which I have advocated for some time." Senator Rockefeller went on to say that insulating Medicare payment polices from special interests would mean "Americans can be confident that Medicare decisions are based on the best and most objective evidence."

Adapted from the President's Letter and a press release from Senator John D. Rockefeller.

Links:
http://rockefeller.senate.gov/press/record.cfm?id=314024&
http://www.whitehouse.gov/the_press_office/Letter-from-President-Obama-to-Chairmen-Edward-M-Kennedy-and-Max-Baucus/

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