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The Future of Medicare and the Role of Traditional Medicare as Competitor
Competition is vital to the success of Medicare Advantage but is limited. As the program grows rapidly under favorable payment policy, a reformed traditional Medicare could provide valuable competition.
Journal Article
Fixing medical prices : how physicians are paid
Fixing Medical Prices explores the activities of a largely unknown but highly powerful committee affiliated with the American Medical Association (AMA) that advises Medicare on the relative value of different medical services. Unwittingly or not, its recommendations set off a chain reaction that impacts all Americans. Medicare follows most of its fee recommendations, which are modeled by private insurers and federal and state programs. The book adds a new perspective to debates about the cost of healthcare, interest group influence on public policies, the role of experts in policymaking and regulation, and the past and future of the medical profession.-- Provided by publisher
Book
COMPARISON FRICTION: EXPERIMENTAL EVIDENCE FROM MEDICARE DRUG PLANS
Consumers need information to compare alternatives for markets to function efficiently. Recognizing this, public policies often pair competition with easy access to comparative information. The implicit assumption is that comparison friction—the wedge between the availability of comparative information and consumers' use of it—is inconsequential because when information is readily available, consumers will access this information and make effective choices. We examine the extent of comparison friction in the market for Medicare Part D prescription drug plans in the United States. In a randomized field experiment, an intervention group received a letter with personalized cost information. That information was readily available for free and widely advertised. However, this additional step—providing the information rather than having consumers actively access it—had an impact. Plan switching was 28% in the intervention group, versus 17% in the comparison group, and the intervention caused an average decline in predicted consumer cost of about $100 a year among letter recipients—roughly 5% of the cost in the comparison group. Our results suggest that comparison friction can be large even when the cost of acquiring information is small and may be relevant for a wide range of public policies that incorporate consumer choice.
Journal Article
Old and sick in America : the journey through the health care system
\"Since the introduction of Medicare and Medicaid in 1965, the American health care system has steadily grown in size and complexity. Muriel R. Gillick takes readers on a narrative tour of American health care, incorporating the stories of older patients as they travel from the office to the hospital to the skilled nursing facility, and examining the influence of forces as diverse as pharmaceutical corporations, device manufacturers, and health insurance companies on their experience\"-- Provided by publisher.
Book