Number: RL32618
Title: Medicare Advantage Payments
Authors: Hinda Ripps Chaikind and Paulette C. Morgan, Domestic Social Policy Division 
Abstract: Medicare has a long-standing history of offering its beneficiaries managed care coverage through private plans as an alternative to the traditional fee-for-service (FFS) program, in which a payment is made for each Medicare-covered service provided to a beneficiary. Beginning in the 1970s, private health plans were allowed to contract with Medicare on a cost-reimbursement basis. In 1982, Medicares risk contract program was created, allowing private entities, mostly health maintenance organizations (HMOs), to contract with Medicare. This report focuses on MA payments. For a discussion on the effect of the MMA on Medicare managed care, see CRS Report RS21761: Medicare Advantage: What Does It Mean for Private Plans Currently Serving Medicare Beneficiaries?
Pages: 32
Date: June 20, 2005