Minnesota Medical Association: Trump Administration Proposes Changes to Medicare

MINNEAPOLIS, Minnesota, Oct. 10 -- The Minnesota Medical Association issued the following news:

Protecting and Improving Medicare for Our Nation's Seniors," which outlines policy areas that the president believes need to be addressed in order to improve Medicare, but does not include specific legislative or regulatory changes.

The order:

* Expands the use of Medicare Advantage plans, which currently serve about one-third of all Medicare beneficiaries. It calls for a reduction of regulatory barriers that restrict "innovative Medicare Advantage benefit structures and plan designs." It also calls for the expansion of Medical Savings Accounts (MSAs), which are similar to Health Savings Accounts. MSAs are typically used in conjunction with high-deductible Medicare Advantage plans. Funds can be contributed and withdrawn tax-free and can be used to pay for medical expenses. Under current law, Medicare beneficiaries cannot contribute to an MSA - only the insurer can.

* Requires the Secretary of Health and Human Services (HHS) to issue a report that outlines proposals to align Medicare Fee for Service (FFS) reimbursement rates with rates paid by Medicare Advantage and commercial insurers.

* Requires the HHS Secretary to propose reforms that would allow physicians and other providers to spend more time with patients by reducing other burdens.

* Requires the HHS Secretary to review current policies and propose changes that would ensure that clinicians are practicing at the top of their licenses and are reimbursed according to work performed rather than occupation.

* Calls for regulatory changes to adjust network adequacy requirements to increase access to telehealth services.

* Calls for streamlined processes for coverage decisions by CMS and approvals by FDA to encourage innovation.

* Calls for regulatory changes that would ensure that Medicare FFS is not promoted over Medicare Advantage Plans.

* Requires the HHS Department to study the use of certain alternative payment models, including private contracting approaches and the use of Medicare Advantage rates to set rates paid by Medicare FFS.

The order does not include details with specific policy or regulatory changes. As more details are released, the MMA will continue to monitor these changes to ensure physicians are not negatively impacted.