In the last two weeks, OMB director Peter Orszag asked Congress to adopt legislation making the Medicare Payment Advisory Commission (MedPac) an independent agency to review the costs and procedures of Medicare and make binding recommendations to cut costs and improve the quality of care. (http://www.whitehouse.gov/omb/assets/legislative_letters/Pelosi_071709.pdf)
Orszag's pleas have been heard. Yesterday, Rep. Henry Waxman agreed to add the enhanced MedPac idea into the House healthcare reform legislation. As Politico.com reports: " Moderate House Democrats and a key committee chairman emerged from a three-hour meeting at the White House on Tuesday with a tentative agreement to give an outside panel — rather than Congress — the power to make cuts to government-financed health care programs.
"OMB Director Peter Orszag called it “probably the most important piece that can be added” to the health care bill in the House, and the deal between the Blue Dog Coalition and House Energy and Commerce Committee Chairman Henry Waxman (D-Calif.) was the first positive important development Democratic Party leaders could claim since the American Medical Association endorsed their bill last week."
A bill sponsored by Sen. Jay Rockefeller (D-WV) already has the outline of how the "new" MedPac might work. (http://www.google.com/hostednews/ap/article/ALeqM5iUeFKljc9482Hcl3vdvIM0RMf0GQD99J03080
"A bill backed by Sen. Jay Rockefeller, D-W.Va., would give MedPAC's annual recommendations, which are advisory, the force of law unless overridden by Congress. That would be a remarkable grant of authority by lawmakers — an acknowledgment that Congress was politically incapable of reining in Medicare on its own — much as legislation a decade ago put the closure of unneeded military bases on autopilot."
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