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  • Title: The consequences of paying Medicare managed care plans their costs.
    Author: Sing M, Brown R, Hill SC.
    Journal: Inquiry; 1998; 35(2):210-22. PubMed ID: 9719788.
    Abstract:
    This study examines 1993 Medicare expenditures for enrollees in 63 managed care plans that were reimbursed on a cost basis. We find that government spending for enrollees in cost-reimbursed plans in 1993 was substantially greater than it would have been had these enrollees instead received care in traditional fee-for-service Medicare or in a Medicare risk plan. The increase was due entirely to the much higher expenditures for Part B services under cost reimbursement. The findings suggest that Medicare cost reimbursement of health plans should be eliminated or significantly modified.
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