Health Payer Intelligence December 14, 2018
Kyle Murphy, PhD

New research on Medicare Advantage spending is fueling interest in using competitive bidding to drive down healthcare spending.

In light of future research on Medicare Advantage spending compared to Medicare fee-for-service, a trio of researchers writing on the Health Affairs blog see the promise in competitive bidding to drive down healthcare spending.

“Overpayment of MA plans could be eliminated by basing government payments on bids submitted by both fee-for-service Medicare and MA plans to cover the cost of Medicare’s entitlement benefits,” write Coulam et al. “Medicare beneficiaries would be guaranteed access to at least one health plan in their county for no more than the Part B premium, but if they chose a more expensive health plan, they would...

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