Number: RS21761
Title: Medicare Advantage: What Does it Mean for Private Plans Currently Serving Medicare Beneficiaries?
Authors: Paulette C. Morgan and Hinda R. Chaikind, Domestic Social Policy Division 
Abstract: The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (P.L. 108-173) added a voluntary prescription drug benefit to Medicare and established the Medicare Advantage program to replace the Medicare+Choice program. The act increases payments to private plans beginning in March 2004, creates a new competitive program in 2006, adds a regional program also in 2006, and creates a temporary program that requires traditional Medicare to compete with private plans in 2010. These changes were designed to increase private plan participation and to increase competition in Medicare. Although plan participation is likely to increase in the short term, long-term participation in unknown. This report outlines major changes to the managed care program and indicates how these changes may affect participation.
Pages: 6
Date: April 20, 2004