Payment for Medicare Advantage Plans: Policy Issues and Options. Payment for Medicare Advantage Plans: Policy Issues and Options : Table 10

06/30/2009

: Table 10

 Vision for the Future of MedicareRelated Policy Views on Transforming the Delivery SystemImplications for Payment and Choices
Analysts Emphasizing the Role of Traditional MedicareTraditional Medicare will remain the core program for providing beneficiary coverage, MA available as a choice to meet some beneficiaries needs and preferencesAddress long run cost and quality issues through aggressive VBP policies in the FFS programChoices can be good for beneficiaries and the program, but we should not pay more than FFS for them
Analysts Emphasizing the Use of Market-Based ApproachesCompeting private MA plans represent the future of Medicare; traditional program diminishes as a source of coverage for beneficiariesEncourage greater competition through expanded choices and eventual implementation of competitive bidding to determine premium contributionsChoices drive the marketplace, paying more to encourage plan participation is acceptable in the short run because competition will reduce spending in the long run
Analysts Seeing a Role for Both Traditional Medicare and Private PlansBoth MA and the traditional program have important roles in the future of MedicarePotentially pursue both of the above strategiesThere may be select cases in which we would pay more for private plans ? e.g.  high performance, innovations in care, broad geographic coverage