Fee-for-service Medicare in a competitive market environment.
Since its inception, the Medicare Program has allowed for the participation of private health plans, but the relationship of private plans to the government-sponsored fee-for-service (FFS) plan has been the subject of debate. Increased payments to private plans, the introduction of regional preferred provider organizations (PPOs), and a mandated demonstration of price competition that includes FFS Medicare reflect an ongoing attempt to define the role of private plans. The purpose of this article is to explore the roles of private plans and FFS Medicare and to attempt to identify the advantages and disadvantages of each.
Dowd
Bryan E
BE
Division of Health Services Research and Policy, School of Public Health, University of Minnesota, Minneapolis 55455, USA. dowdx001@umn.edu
Coulam
Robert F
RF
Feldman
Roger
R
Pizer
Steven D
SD
D004465:Economic Competition; D018588:Fee-for-Service Plans; D006278:Medicare; D011243:Preferred Provider Organizations; D014481:United States