Analysis of the Variation in Efficiency of Medicare Advantage Plans
AbstractThe Affordable Care Act has altered payment policy for private Medicare Advantage (MA) plans, with the goal of lowering costs to bring them closer to the costs of traditional Medicare. Using new information on 2009 MA costs, an issue brief compares plansâ€™ estimates of per capita costs for providing Parts A and B benefits to their enrollees, on a risk-adjusted basis, against government data on the same costs for traditional Medicare program beneficiaries in the same county. On average, risk-adjusted MA plan costs were 4 percent higher than traditional Medicare costs (104 percent). Among plan types, only HMOs had lower average costs than traditional Medicare. The wide variation in costs for MA plans relative to those for traditional Medicare suggests room for greater efficiency in care delivery.
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Bibliographic InfoPaper provided by Mathematica Policy Research in its series Mathematica Policy Research Reports with number 7765.
Date of creation: 24 Apr 2013
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Medicare Advantage; Efficiency; Variation; Health;
Find related papers by JEL classification:
- I - Health, Education, and Welfare
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-04 (All new papers)
- NEP-EFF-2013-06-04 (Efficiency & Productivity)
- NEP-HEA-2013-06-04 (Health Economics)
- NEP-IAS-2013-06-04 (Insurance Economics)
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