Improving Affordability and Equity in Medicare Advantage. (June 2019)

• Record Type: Journal Article
• Authors: Song, Zirui; Basu, Sanjay
• Is Part Of: Inquiry. Volume 56(2019)
• Publication Date: 2019-06
• Subjects: Medicare Advantage -- Affordable Care Act -- health insurance -- Medicare payment -- competition; Medical policy -- United States -- Periodicals; Medical care, Cost of -- United States -- Periodicals; Hospitalization insurance -- United States -- Periodicals; 362.10973
• DOI: 10.1177/0046958019852873
• Languages: English
• ISSNs: 0046-9580

Abstract

Facing projected growth in federal deficits, policymakers may increasingly look to Medicare for opportunities to slow spending. Medicare Advantage, which has grown to over one-third of the Medicare population, now costs the federal government over $230 billion a year. Competition in the program is weak in many parts of the country and federal subsidies are distributed unevenly to beneficiaries who are enrolled. This article offers a potential approach toward reforming the Medicare Advantage payment system, which could lower federal costs and enhance equity in the program. It builds a simple framework containing policy options and uses 2015 Centers for Medicare and Medicaid Services data to estimate the stylized impact on federal spending and enrollee benefits.