Raising Payment Rates: Initial Effects of BIPA 2000

June 1, 2001

Authors: Marsha Gold and Lori Achman, Mathematica Policy Research, Inc.

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Overview

The Benefits Improvement and Protection Act (BIPA) of 2000 raised payment rates to Medicare+Choice plans in lower payment areas effective March 2001. Before BIPA, the minimum county payment under Medicare+Choice was $415 in 2001. BIPA raised the minimum payment in counties with metropolitan areas of at least 250,000 people to $525 and elsewhere to $475. For counties with rates already above these thresholds, the minimum payment increase was raised from 2 percent to 3 percent for 2001 only.

Citation

Raising Payment Rates: Initial Effects of BIPA 2000, Marsha Gold and Lori Achman, Mathematica Policy Research, Inc., The Commonwealth Fund, June 2001