[House Report 105-774]
[From the U.S. Government Publishing Office]



105th Congress                                            Rept. 105-774
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1
_______________________________________________________________________


 
EXPANSION OF MEMBERSHIP OF THE MEDICARE PAYMENT ADVISORY COMMISSION TO 
                                   17

                                _______
                                

                October 5, 1998.--Ordered to be printed

_______________________________________________________________________


    Mr. Archer, from the Committee on Ways and Means, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4377]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 4377) to amend title XVIII of the Social Security 
Act to expand the membership of the Medicare Payment Advisory 
Commission to 17, having considered the same, report favorably 
thereon without amendment and recommend that the bill do pass.

                                CONTENTS

                                                                   Page
 I. Introduction......................................................2
        A. Purpose and Summary...................................     2
        B. Background and Need for Legislation...................     2
        C. Legislative History...................................     2
II. Explanation of Provisions.........................................2
III.Vote of the Committee.............................................3

IV. Budget Effects of the Bill........................................3
        A. Committee Estimate of Budgetary Effects...............     3
        B. Statement Regarding New Budget Authority and Tax 
            Expenditures.........................................     3
        C. Cost Estimate Prepared by the Congressional Budget 
            Office...............................................     4
 V. Other Matters to be Discussed under the Rules of the House........4
        A. Committee Oversight Findings and Recommendations......     4
        B. Summary of Findings and Recommendations of the 
            Government Operations Committee......................     5
        C. Constitutional Authority Statement....................     5
VI. Changes in Existing Law Made by the Bill as Reported..............5

                            I. INTRODUCTION

                         A. Purpose and Summary

    H.R. 4377 expands the number of Commissioners serving on 
the Medicare Payment Advisory Commission (MedPAC).

               B. Background and Need for the Legislation

    The Balanced Budget Act of 1997, Public Law 105-33, 
established the Medicare Payment Advisory Commission (MedPAC) 
as a result of merging two commissions, the Prospective Payment 
Advisory Commission and the Physician Payment Review 
Commission. MedPAC, like its predecessors, is a nonpartisan 
commission which advises Congress and makes recommendations 
regarding Medicare payment policies.
    Section 4022 of the Balanced Budget Act detailed the 
criteria for membership on the Commission: The membership of 
the Commission shall include individuals with national 
recognition for their expertise in health finance and 
economics, actuarial science, health facility management, 
health plans and integrated delivery systems, reimbursement of 
health facilities, allopathic and osteopathic physicians, and 
other providers of health services, and other related fields, 
who provide a mix of different professionals, broad geographic 
representation, and a balance between urban and rural 
representatives.
    MedPAC commissioners are appointed by the Comptroller 
General and serve terms of three years. The Balanced Budget Act 
authorizes the Commission to have fifteen commissioners. H.R. 
4377 would increase the number of commissioners appointed to 
MedPAC to seventeen.
    The addition of two commissioners would enable the 
commission to reflect more fully the diversity of backgrounds 
and interests in the health policy community. Expanding the 
number of commissioners would not only allow for a greater 
range of professional expertise but also a more diverse 
representation from various parts of the country.

                         C. Legislative History

    On Tuesday, September 15, 1998, the Subcommittee on Health 
ordered favorably reported to the full Committee, by voice 
vote, H.R. 4377, without amendment. On Friday, September 18, 
1998, the Committee on Ways and Means ordered favorably 
reported, H.R. 4377, without amendment.

                      II. EXPLANATION OF PROVISION

1. Expansion of Membership of the Medicare Payment Advisory Commission

            Current law
    Section 4022 of the Balanced Budget Act established the 
Medicare Payment Advisory Commission (MedPAC) as a result of 
merging two commissions, the Prospective Payment Assessment 
Commission and the Physician Payment Review Commission. MedPAC, 
like its predecessors, is a nonpartisan commission which 
advises Congress and makes recommendations regarding Medicare 
payment policies. The Commission reports to the Committee on 
Ways and Means, the House Commerce Committee and the Senate 
Finance Committee. MedPAC commissioners are appointed by the 
Comptroller General and serve terms of three years. The 
Balanced Budget Act authorizes the Commission to have fifteen 
commissioners.
            Explanation of provision
    H.R. 4377 increases the number of commissioners appointed 
to MedPAC to seventeen from the current fifteen.
            Reason for change
    The addition of two commissioners would enable the 
commission to reflect more fully the diversity of backgrounds 
and interests in the health policy community. Expanding the 
number of commissioners would not only allow for a greater 
range of professional expertise but also a more diverse 
representation from various parts of the country.
            Effective date
    May 1, 1999.

                       III. VOTE OF THE COMMITTEE

    In compliance with clause 2(l)(2)(B) of rule XI of the 
Rules of the House of Representatives, the following statements 
are made concerning the votes of the Committee in its 
consideration of the bill:

                       motion to report the bill

    The bill, H.R. 4377, was ordered favorably reported by 
voice vote on September 18, 1998, with a quorum being present.

                     IV. BUDGET EFFECTS OF THE BILL

               A. Committee Estimate of Budgetary Effects

    In compliance with clause 7(a) of rule XIII of the Rules of 
the House of Representatives, the following statement is made: 
The Committee agrees with the estimate prepared by the 
Congressional Budget Office (CBO) which is included below.

    B. Statement Regarding New Budget Authority and Tax Expenditures

    In compliance with clause 2(l)(3)(B) of rule XI of the 
Rules of the House of Representatives, the Committee states 
that the provisions in the Committee bill, if enacted, would 
have no impact on direct spending.

      C. Cost Estimate Prepared by the Congressional Budget Office

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 23, 1998.
Hon. Bill Archer,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4377, a bill to 
amend title XVIII of the Social Security Act to expand the 
membership of the Medicare Payment Advisory Commission to 17.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Tom Bradley.
            Sincerely,
                                         June E. O'Neill, Director.
    Enclosure.

H.R. 4377--A bill to amend title XVIII of the Social Security Act to 
        expand the membership of the Medicare Payment Advisory 
        Commission to 17

    CBO estimates that enacting this bill would increase 
spending by $15,000 in 1999 and by about $30,000 annually in 
subsequent years, assuming appropriation of the necessary 
amounts. Because the bill would not affect direct spending or 
receipts, pay-as-you-go procedures would not apply. H.R. 4377 
contains no intergovernmental or private-sector mandates as 
defined in the Unfunded Mandates Reform Act and would no affect 
the budgets of state, local, or tribal governments.
    H.R. 4377 would expand the membership of the Medicare 
Payment Advisory Commission (MedPAC) by two, from 15 to 17. The 
terms of the new members would begin on May 1, 1999. MedPAC 
expects spending for members' compensation and travel to 
average less than $15,000 per commissioner in 1998 and 1999. 
Therefore, the bill would increase MedPAC spending by $15,000 
(half the annual cost of two commissioners) in 1999, and by 
$30,000 in subsequent years.
    The CBO staff contact for this estimate is Tom Bradley. 
This estimate was approved by Paul N. Van de Water, Assistant 
Director for Budget Analysis.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE

          A. Committee Oversight Findings and Recommendations

    With respect to clause 2(l)(3)(A) of rule XI of the Rules 
of the House of Representatives, the Committee states that the 
Subcommittee on Health believes that the action taken was 
necessary due to it's oversight of the Medicare Payment 
Advisory Commission (MedPAC).

B. Summary of Findings and Recommendations of the Government Operations 
                               Committee

    With respect to clause 2(l)(3)(D) of rule XI of the Rules 
of the House of Representatives, the Committee states that no 
oversight findings or recommendations have been submitted by 
the Committee on Government Reform and Oversight regarding the 
subject of the bill.

                 C. Constitutional Authority Statement

    With respect to clause 2(l)(4) of rule XI of the Rules of 
the House of Representatives, relating to Constitutional 
Authority, the Committee states that the Committee's action in 
reporting the bill is derived from Article I of the 
Constitution, Section 8 (``The Congress shall have power to lay 
and collect taxes, duties, imposts and excises, to pay the 
debts and provide for the common defense and general welfare of 
the United States. * * *'').

        VI. CHANGES IN EXISTING LAW MADE BY THE BILL AS REPORTED

    In compliance with the Rules of the House of 
Representatives, changes in existing law made by the bill, as 
reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new matter is printed in 
italic, existing law in which no change is proposed is shown in 
roman):

                SECTION 1805 OF THE SOCIAL SECURITY ACT

                  medicare payment advisory commission

    Sec. 1805. (a) * * *

           *       *       *       *       *       *       *

    (c) Membership.--
          (1) Number and appointment.--The Commission shall be 
        composed of [15] 17 members appointed by the 
        Comptroller General.

           *       *       *       *       *       *       *