When Medicare costs started skyrocketing along with the rest of the health care sector, the Medicare program began contractin...Read more
Bush Plan to Privatize Medicare Could Increase Costs
- May 30th, 2003
President Bush has proposed increasing the role of private health plans in Medicare by encouraging enrollees to choose a system under which patients must use doctors and other providers from a list created by private health plans. But new data suggests that shifting Medicare recipients to such arrangements, called preferred provider organizations (PPOs), could substantially increase Medicare costs because the fees paid to providers by private health plans generally are higher than those paid by fee-for-service Medicare, according to an article in the New York Times.
The new information "has the potential to reshape the debate over the future of Medicare," says the Times.
A study commissioned by the government's own Medicare Payment Advisory Commission collected data from 33 health plans covering 31 million people. The study found that private health plan fees are about 15 percent higher than Medicare fees. This is so in part because private plans usually have to pay doctors more than Medicare to get enough physicians to participate in their networks.
In addition, administrative costs of private plans are much higher, often about 15 to 16 percent of revenues, compared to Medicare's 3 percent administrative costs. For example, private plans incur expenses for advertising and lobbying.
To read the article in the New York Times, go to: http://www.nytimes.com/2003/05/06/politics/06MEDI.html (Free registration required and article may be only temporarily available.)
Local Elder Law Attorneys in Ashburn, VA
Farr Law Firm
In practice since 1987, Fairfax Attorney Evan Farr is widely recognized as one of the leading Elder Law, Estate Planning, and Specials Needs attorneys in Virginia and one of foremost experts in the Country in the field of Medicaid Asset Protection and related Trusts. Evan Farr has been quoted or cited as an expert by n...
Hammond and Associates, LLC, Elder Law, Estate Planning, Wills, Trusts, Probate
For Jeffrey Hammond, the practice of Elder Law is personal. Jeff’s many years of experience in law and in business did not prepare him for the crisis he faced in 2005 and 2006 when his father suffered a stroke and both of his parents suffered from dementia and other medical problems. At that time, Jeff began an i...
Felinton Elder Law & Estate Planning Centers
Mindy Felinton concentrates in the areas of Medicaid planning, Veterans' Benefits, asset protection, nursing home planning, elder law, wills, estate planning, trusts, living wills, powers of attorney, probate administration and trust administration and began her legal career 30 years ago as an Assistant State Attorney...