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Explaining Health Reform: Medicare and the New Independent Payment Advisory Board

This brief describes how the new board created under the 2010 health reform law is expected to limit the growth in Medicare spending over time. Starting in 2014, if projected per capita Medicare spending exceeds targets set in the law, the board must recommend ways to reduce Medicare spending, while maintaining quality and access to care for beneficiaries. The board’s recommendations automatically take effect the next year unless Congress adopts an alternative plan to achieve an equivalent level of savings.

The brief examines the structure and processes of the board and outlines the key dates in the board’s operations through 2019.

Issue Brief (.pdf)

An April 2011 report provides an in-depth analysis of the Independent Payment Advisory Board, how it will control Medicare costs, and its implications for Medicare

Previous Version:

Setting Medicare Payment Policy: Is There a Role for an Independent Entity? – October 2009 (.pdf)

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Filling the need for trusted information on national health issues, the Kaiser Family Foundation is a nonprofit organization based in Menlo Park, California.