The House voted 223-181 to end the Independent Payment Advisory Board, established under the 2010 healthcare reform law.
Seven Democrats joined the Republican majority in voting down the panel.
Most Democrats voted to keep the board because the proposed legislation also contained a provision that would limit medical malpractice lawsuits, Reuters reported.
The board has not been appointed and its initial set of suggestions for cutting Medicare costs are not due until 2014.
The Supreme Court is taking up the law and could hand down a ruling during the presidential campaign season, after the primaries.