Medicare Monday: Why the Independent Payment Advisory Board is Bad For Patients

The Independent Payment Advisory Board (IPAB) – created by the Affordable Care Act – could come between patients and their health care providers.

If Medicare growth exceeds a certain target, IPAB will go into effect making decisions about cuts to Medicare and Medicare providers. The board would empower a small group of unelected members to decide on Medicare spending cuts, with the power to override decisions made by Congress. Despite its name, IPAB would not be advisory. Decisions made by the board could go into effect even without Congressional approval.

Allowing an unelected, unaccountable board like IPAB to make short-sighted decisions about Americans’ health care is not the right approach to long-term health care savings.

IPAB could restrict patient access to needed treatments and disproportionately target new treatments in order to cut spending. Focusing solely on cost-cutting, rather than what’s best for patients – including developing medicines that help people live longer, healthier lives – will hurt both Medicare beneficiaries and the future of medical innovation.

PhRMA joined more than 500 organizations in expressing concern about IPAB. Eliminating this problematic board would ensure seniors and Congress continue to have control over Medicare while continuing to support continued medical innovation.