Paying Medicare Advantage by Competitive Bidding: How Much Competition Is There?

Source: Brian Biles, Jonah Pozen, and Stuart Guterman, Commonwealth Fund, Vol. 65, August 12, 2009

From the summary:
Private health plans that enroll Medicare beneficiaries–known as Medicare Advantage (MA) plans–are being paid $11 billion more in 2009 than it would cost to cover these beneficiaries in regular fee-for-service Medicare. To generate Medicare savings for offsetting the costs of health reform, the Obama Administration has proposed eliminating these extra payments to private insurers and instituting a competitive bidding system that pays MA plans based on the bids they submit. This study questions the degree to which firms offering MA plans actually face competition.

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