Healthcare Economist June 17, 2018
CMS has focused in recent years on payment reform–especially alternative payment models–in Medicare’s fee-for-service (FFS) reimbursement system, but much less has been paid to beneficiaries enrolled in Medicare’s managed care program (i.e., Medicare Advantage). Currently, however, more than 1 in 3 beneficiaries are enrolled in an Medicare Advantage plan, and by 2028 that number could be 1 in 2 beneficiaries. However, there is good reason to believe that the Medicare Advantage program may actually be a more attractive option for payment reform than the FFS population. A report for the Duke Margolis Center notes 4 key reasons why this could be the case:
First, the financing of MA plans provides an incentive to innovate; plans are able to keep savings,...
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