Report Proposes Big Cuts In Managed Medicare

Law360, New York (March 2, 2007, 12:00 AM EST) -- The Medicare Payment Advisory Commission said on Thursday said that care administered through private insurers was 12% more expensive for the government than traditional Medicare, and recommended saving around $65 billion over five years by eliminating the gap.

Under managed care, called Medicare Advantage, insurers receive a set amount of money per Medicare recipient and reimburse those who provide care. Under traditional Medicare, the government pays doctors, hospitals and other providers directly.

MedPAC specifically recommended that Medicare physician reimbursements should decrease by 10% next year and...
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