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Affordable Care Act’s Independent Payment Advisory Board (IPAB)

Background: The Independent Payment Advisory Board (IPAB) was established by the passage of the Patient Protection and Affordable Care Act (PPACA) of 2010 and is charged with reducing Medicare costs. Should the cost associated with operating Medicare exceed the rate of inflation, a trigger is reached and this board is engaged.

Impact to Grangers:

Health care jobs are essential to rural economies & IPAB could jeopardize job stability and diminish the quality of care provided in rural areas.

  • Rural residents are more likely to be older, poorer, & not carry health insurance
  • 10-15% of the rural workforce is directly employed by the health care industry
  • Local hospitals are often the 2nd or 3rd largest employer in rural areas.
  • Currently, there are 2,157 Health Professional Shortage Areas (HPSA) in rural areas, in contrast to 910 in urban areas
  • Only 10% of physicians practice in rural areas.
  • PPACA has already cut nearly $500 billion out of Medicare, & IPAB recommendations, to begin in 2015, could cut even more, creating a reluctance to begin new construction projects or hire new staff in rural areas. READ FULL ARTICLE


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