The Board of Trustees of the Medicare Trust Funds (the Hospital Insurance (HI) and Supplementary Medical Insurance (SMI) Trust Funds) report annually on their financial condition. The reports describe the trust funds' current and projected financial condition, within the next 10 years (the "short term") and over the next 75 years (the "long term"). The Medicare Board of Trustees has directed the Secretary of Health and Human Services (who is one of the Trustees) to establish a panel of technical experts to review the assumptions and methods underlying the HI and SMI annual reports.
42 USC 1314; Section 1114(f) of the Social Security Act, as amended. The panel is governed by provisions of Public Law 92-463, as amended (5 USC Appendix 2), which sets forth standards for the formation and use of advisory committees.
The Technical Review Panel on Medicare Trustees Reports shall review the assumptions and methods underlying the Hospital Insurance and Supplementary Medical Insurance Trust Fund annual reports. The panel's review shall include the following four topics:
- Medicare assumptions (e.g., utilization rates, medical price increases)
- Projection methodology (how assumptions are used to make cost projections)
- Long-range growth assumptions for HI and SMI
- Use of stochastic forecasting techniques.
The panel shall consist of up to seven members selected by the Secretary, or designee, who are experts in the fields of economics and actuarial science. The Secretary, or her designee, shall appoint one of the members to serve as the chair. Members shall be invited to serve for the duration of the panel.
Management and support services shall be provided by the Office of the Assistant Secretary for Planning and Evaluation and the Office of the Actuary, Health Care Financing Administration(now known as Centers for Medicare and Medicaid Services(CMS)).
The Panel shall meet approximately six times, at the call of the chair with the advance approval of a Government official, who shall also approve the agenda. A Government official shall be present at all meetings.
Meetings shall be open to the public except as determined otherwise by the Secretary or other official to whom the authority has been delegated. Notice of all meetings shall be given to the public.
Meetings shall be conducted, and records of the proceedings kept, as required by applicable laws and Departmental regulations.
A quorum shall be one more than one-half of the authorized membership.
Members who are not full-time Federal employees shall be paid at a rate not to exceed the daily equivalent of the rate in effect for an Executive Level IV of the Executive Schedule for each day they are engaged in the performance of their duties as members of the Committee. Members, while so serving away from their homes or regular places of business, may be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as such expenses are authorized by Section 5703, Title 5 USC, as amended, for employees serving intermittently.
Estimated Annual Costs
Estimated annual costs for operating the panel, including compensation and travel expenses for members but excluding staff support, is $82,430. Estimate of annual person-years of staff support required is 1.25, at an estimated annual cost of $115,059.
The panel shall issue its findings in reports to the Secretary and the other Trustees, including a final report issued no later than the Fall 1999 Trustees meeting.
In the event a portion of the meeting is closed to the public, a report shall be prepared which shall contain, at a minimum, a list of members and their business addresses, the Committee's function, dates and places of meetings, and a summary of committee activities and recommendations made during the fiscal year. A copy of the report shall be provided to the Department Committee Management Officer.
Unless renewed by appropriate action prior to its expiration, the Technical Review Panel on Medicare Trustees Reports will terminate two years from the date the charter is approved.
Date: August 12, 1999