Healthcare DIVE August 19, 2019
Dive Brief:
- Medicare Advantage is not producing any savings but spends between 2% and 5.5% more than traditional Medicare, a report in Health Affairs finds.
- On the other hand, the report found Medicare’s accountable care organizations are reducing costs as compared to traditional Medicare. The Medicare Shared Savings Program, which includes accountable care organizations, saved about 1% to 2% in 2016.
- The authors suggest a number of changes for policymakers to consider if they want to improve competition and address flaws among the two programs.
As the popularity of programs such as Medicare Advantage grows, it’s important to understand the spending ramifications and...