Health Affairs December 11, 2018
Medicare offers health coverage to the elderly through two types of plans: traditional Medicare, which pays providers a fee for each service they perform, and Medicare Advantage (MA) plans, in which Medicare makes predetermined monthly payments to private plans for each beneficiary they enroll, independent of the volume of services used by each beneficiary. Today, one-third of all Medicare beneficiaries are enrolled in MA plans.
Ambiguous Early Evidence On Medicare Advantage
The role of MA plans in the Medicare program has always been controversial, in part because early estimates of MA plans’ effects on cost and quality of care were ambiguous. Analyses of cost differencesperformed in the 1980s and 1990s found that MA enrollees cost the program more than they...
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