Payment policy and competition in the Medicare+Choice Program

Health Care Financing Review, Fall, 2002 by Steven D. Pizer, Austin B. Frakt

Although our results are quite robust, at least two cautions apply. First, the strength of this analysis comes from its tight focus on a particular period in time, but this is also a weakness. The M C Program was experiencing unprecedented plan withdrawals and benefit changes during the first few months of 2001 and relationships observed during that time might not be as generalizable as they would be if a longer period of study could have been used.

Second, the inability to directly observe the cost of providing coverage makes this type of analysis challenging, even under favorable conditions like those following the passage of BIPA. It will be difficult to confirm these results with future data without a method for observing and measuring this cost.