HOME >> MEDICINE >> NEWS
Extra payments to Medicare Advantage plans totaled $5.2 billion over fee-for-service costs in 2005

New York, NY, November 30, 2006Private Medicare Advantage (MA) plans were paid an average 12.4% more per enrollee in 2005 compared with what the same enrollees would have cost in the traditional Medicare fee-for-service program, according to a new report from The Commonwealth Fund.

In the report, Brian Biles of George Washington University and colleagues estimate that extra payments to MA plans amounted to $922 over fee-for-service costs for each of about 5.6 million Medicare beneficiaries enrolled in Medicare Advantage (MA) plans, for a total of more than $5.2 billion.

The bulk of these extra payments were mandated by the Medicare Modernization Act of 2003, which were intended to expand the role of private plans in Medicare.

"Medicare should carefully examine whether extra payments to Medicare Advantage plans are the best use of dollars for the beneficiaries the program is designed to serve," said Commonwealth Fund President Karen Davis. "These payments could instead be used to provide better benefits and reduce out-of-pocket costs for seniors and the disabled."

The authors of the report, The Cost of Privatization: Extra Payments to Medicare Advantage PlansUpdated and Revised, note that eliminating extra payments to private plans could save Medicare a projected $30 billion over five years. They point out that these funds could be used to:

  • fill in the coverage gap, or doughnut hole, in the drug benefit;

  • create a viable alternative to the ineffective sustainable growth rate mechanism currently used to determine the physician payment update; or

  • reduce the increase in the Part B premium in 2007 by about $10 per month for each beneficiary.

"While encouraging enrollment in private plans was billed as a way to reduce costs for the program, Medicare Advantage in fact costs Medicare money because of the extra payments," said Biles, professor of health policy at George Was
'"/>

Contact: Mary Mahon
mm@cmwf.org
212-606-3853
Commonwealth Fund
30-Nov-2006


Page: 1 2

Related medicine news :

1. Extra pay does not improve hospital performance
2. Margaret Foti receives AACR Award for Leadership and Extraordinary Achievements in Cancer Research
3. Extra cortisol protects womens mood under stress
4. Disability payments may spur drug abuse
5. ACP commends proposed changes to payments for physician work at nursing facilities
6. Higher medicaid payments are good, but not great
7. Support for Childrens Health and Medicare Protection Act given to House leaders by ACP
8. ACP challenges Congress to make fundamental changes in Medicare payment policies
9. Marked departure in Medicare practice of paying physicians in Geriatric Care Improvement Act
10. Medicare payment cuts will accelerate primary care collapse
11. Study finds major variation in Medicare Rx drug costs

Post Your Comments:
*Name:
*Comment:
*Email:


(Date:10/12/2017)... ... October 12, 2017 , ... Information about the ... to develop to enable prevention of a major side effect of chemotherapy in ... in pediatric patients. For cisplatin, hearing loss is FDA listed on-label as a ...
(Date:10/12/2017)... ... , ... HMP , a leader in healthcare events and education, today announced ... Award for ‘Best B-to-B Healthcare Website.’ Winners were announced during the Eddie & Ozzie ... competition recognizes editorial and design excellence across a range of sectors. This year’s program ...
(Date:10/12/2017)... ... October 12, 2017 , ... On Saturday, October 21, the Health ... Miles by Moonlight to raise money for the American Heart Association Heart Walk. Teams ... Teams will work together to keep their treadmills moving for 5 hours. Treadmills will ...
(Date:10/12/2017)... ... October 12, 2017 , ... Health Literacy Innovations ... literacy software tool, and the Cancer Patient Education Network (CPEN), an independent professional ... announce a new strategic alliance. , As CPEN’s strategic partner, HLI will ...
(Date:10/12/2017)... ... October 12, 2017 , ... Vohra Chief Medical ... to physician colleagues, skilled nursing facility medical directors and other clinicians at various ... Wound Care." , "At many of these conferences we get to educate other ...
Breaking Medicine News(10 mins):
(Date:10/2/2017)... Lilly and Company (NYSE: LLY ) will ... 2017 on Tuesday, October 24, 2017. Lilly will also ... investment community and media to further detail the company,s ... at 9 a.m. Eastern time. Investors, media and the ... conference call through a link that will be posted ...
(Date:9/28/2017)... , Sept. 28, 2017 Cohen Veterans ... advance the use of wearable and home sensors for ... disorders. Early Signal Foundation, a nonprofit organization focused on ... will provide an affordable analytical system to record and ... ...
(Date:9/23/2017)... , Sept. 22, 2017 Janssen Biotech, ... complete response letter from the U.S. Food and Drug ... approval of sirukumab for the treatment of moderately to ... indicates additional clinical data are needed to further evaluate ... to severely active RA. ...
Breaking Medicine Technology:
Cached News: