The FEHBP as a model for a new Medicare program.
The deficiencies of the Medicare program are rooted in its defined-benefit structure and in its use of price controls. Medicare should be transformed into a defined cash contribution made to beneficiaries' private plans or to the traditional Medicare program. The Federal Employees Health Benefits Program (FEHBP) is essentially such a system and is a good model for Medicare reform. The FEHBP has been highly successful at holding down costs while offering a wide range of benefits and types of plans. Its features for consumer information and plan standards also would be useful in a reformed Medicare program.
Butler
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SM
Heritage Foundation, Washington, DC, USA.
Moffit
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RE
D000368:Aged; D003256:Community Participation; D003363:Cost Control; D006077:Government Agencies; D006264:Health Benefit Plans, Employee / Q000191:economics / Q000458:organization & administration*; D018166:Health Care Reform; D006801:Humans; D006278:Medicare / Q000191:economics / Q000458:organization & administration*; D017146:Models, Organizational; D014481:United States