Government
Medicare pays more for managed care
NEWS IN BRIEF — Posted June 7, 2004
Medicare spending per beneficiary enrolled in managed care plans in 2004 will average 8.4% more than that for beneficiaries in the traditional fee-for-service program. According to a study by the Commonwealth Fund, Medicare will spend $552 more for each of the 5 million Medicare Advantage enrollees, for a total of $2.75 billion in 2004.
Last year's Medicare reform bill increased payments to health plans with the aim of stabilizing the Medicare managed care program, which had seen the departure of many plans. According to the Centers for Medicare & Medicaid Services, plans will use 42% of the additional payments to increase reimbursement to health care practitioners. Another 31% will be used by plans to reduce premiums for enrollees, and 17% will go toward enhancing existing benefits.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/06/07/gvbf0607.htm.
