MEDPAC STUDY AND REPORT ON MEDICARE ADVANTAGE PAYMENTS.

SEC. 169. MEDPAC STUDY AND REPORT ON MEDICARE ADVANTAGE PAYMENTS.(a) Study.—The Medicare Payment Advisory Commission (in this section referred to as the “Commission”) shall conduct a study of the following:(1) The correlation between—(A) the costs that Medicare Advantage organizations with respect to Medicare Advantage plans incur in providing coverage under the plan for items and services covered under the original Medicare fee-for-service program under parts A and B of title XVIII of the Social Security Act, as reflected in plan bids; and(B) county-level spending under such original Medicare fee-for-service program on a per capita basis, as calculated by the Chief Actuary of the Centers for Medicare & Medicaid Services.The study with respect to the issue described in the preceding sentence shall include differences in correlation statistics by plan type and geographic area.(2) Based on these results of the study with respect to the issue described in paragraph (1), and other data the Commission determines appropriate—(A) alternate approaches to payment with respect to a Medicare beneficiary enrolled in a Medicare Advantage plan other than through county-level payment area equivalents.(B) the accuracy and completeness of county-level estimates of per capita spending under such original Medicare fee-for-service program (including counties in Puerto Rico), as used to determine the annual Medicare Advantage capitation rate under section 1853 of the Social Security Act (42 U.S.C. 1395w–23), and whether such estimates include—(i) expenditures with respect to Medicare beneficiaries at facilities of the Department of Veterans Affairs; and(ii) all appropriate administrative expenses, including claims processing.(3) Ways to improve the accuracy and completeness of county-level estimates of per capita spending described in paragraph (2)(B).(b) Report.—Not later than March 31, 2010, the Commission shall submit to Congress a report containing the results of the study conducted under subsection (a), together with recommendations for such legislation and administrative action as the Commission determines appropriate.122 STAT. 2578