Is Medicare Still Paying Private Health Plans Too Much?

The way private insurance plans are paid to provide benefits to Medicare enrollees doesn’t encourage them to be as efficient as they could be, a Commonwealth Fund–supported analysis finds. Researchers Stephen Zuckerman and Laura Skopec of the Urban Institute and independent health economist Stuart Guterman find that the bidding system Medicare uses to induce Medicare Advantage plans to provide benefits at lower costs is not having its intended effect in many regions. They suggest ways it could be made more efficient.