Medicare Advantage: What Does It Mean For Private Plans Currently Serving Medicare Beneficiaries? (CRS Report for Congress)
| Release Date |
April 20, 2004 |
| Report Number |
RS21761 |
| Report Type |
Report |
| Authors |
Paulette C. Morgan and Hinda R. Chaikind, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
Summary:
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 ( P.L. 108-173 )
added
a voluntary prescription drug benefit to Medicare and established the Medicare Advantage program
to replace the Medicare+Choice program. The act increases payments to private plans beginning in
March 2004, creates a new competitive program in 2006, adds a regional program also in 2006, and
creates a temporary program that requires traditional Medicare to compete with private plans in
2010. These changes were designed to increase private plan participation and to increase
competition in Medicare. Although plan participation is likely to increase in the short-term,
long-term participation is unknown. This paper outlines major changes to the managed care program
and indicates how these changes may affect participation. This report will not be updated.
