Researchers in a recent Health Affairs blog post suggested competitive bidding in Medicare Advantage plans could help drive down health spending.
“Overpayment of MA Plans could be eliminated by basing government payments on bids submitted by both fee-for-service Medicare and MA plans to cover the cost of Medicare’s entitlement benefits,” the researchers write. “Medicare beneficiaries would be guaranteed access to at least one health plan in their county for no more than the Part B premium, but if they chose a more expensive health plan, they would pay the extra cost out of pocket.”
According to a HealthPayerIntelligence report, researchers in findings published in 2011 in the Journal of Health Politics, Policy and Law found that competitive bidding could have led to “substantial” savings in a number of examples they investigated.
“Moreover, competitive bidding in various forms has been used successfully for major Medicare benefits, including durable medical equipment and Part D prescription drugs,” the researchers stated.
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