Making Medicare More Efficient


Can the free market save Medicare? The results to date aren’t very encouraging: Medicare Advantage, a program that allows seniors to enroll in private health plans, costs taxpayers about 13% more per person than standard fee-for-service Medicare. But wait! Austin Frakt reports that in some areas MA is more expensive than FFS and in other areas FFS is more expensive than MA. So why not switch to a system where both kinds of plans bid against each other, and reimbursement rates are set differently for each area depending on who submits the lowest bid?

More here, and the AEI study it’s based on is here. The AEI folks claim it would reduce Medicare costs about 8% nationwide. Seems worth a closer look.

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2019 demands.

We Recommend

Latest

Give a Year of the Truth

at our special holiday rate

just $12

Order Now

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.