• Inquiry J Health Car · Jan 1998

    Comparative Study

    The consequences of paying Medicare managed care plans their costs.

    • M Sing, R Brown, and S C Hill.
    • Mathematica Policy Research, Inc., Washington DC 20024, USA.
    • Inquiry J Health Car. 1998 Jan 1;35(2):210-22.

    AbstractThis study examines 1993 Medicare expenditures for enrollees in 63 managed care plans that were reimbursed on a cost basis. We find that government spending for enrollees in cost-reimbursed plans in 1993 was substantially greater than it would have been had these enrollees instead received care in traditional fee-for-service Medicare or in a Medicare risk plan. The increase was due entirely to the much higher expenditures for Part B services under cost reimbursement. The findings suggest that Medicare cost reimbursement of health plans should be eliminated or significantly modified.

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