Medicare: Payment Changes May Open Floodgates
The AAPCC:
- Adjusted Average Per Capita Cost
- A per member per month amount
- Calculated for each county in the U.S.
- Based on previous expenditures on behalf of Medicare residents in that county
- Use of Part A plus Part B, which incorporates price adjustments
The consequences:
- Variation by county
- Volatility over time within each county
- Affects enrollment in managed care plans