A central issue in the discussion over the federal health care budget is the role of private plans in Medicare. This project will address three topics that will likely continue to be the subject of intense debate: 1) proposals to transform Medicare into a “premium support” program; 2) interest on the part of the federal government and the states in enrolling Medicare/Medicaid dual eligibles into private plans; and 3) the impact of new policies that reduce Medicare overpayments to private plans and, for the first time, reward high-performing plans. This project will provide insights regarding the efficiency of private plans relative to traditional Medicare and empirical evidence on the potential impact of alternative policies governing Medicare and private plans.
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The George Washington University