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Declines in Physician Acceptance of Medicare and Private Coverage

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Topics: Individual Coverage | Medicare | Rates/Reimbursement

A study published in the Archives of Internal Medicine found that 88 percent of physicians accepted new privately insured patients in 2008, down from 93 percent in 2005.  The authors cited low reimbursement rates and significant administrative burdens as possible reasons for the decline.  The study also notes that rate of acceptance declined less for Medicare beneficiaries, dropping from 96 to 93 percent between 2005 and 2008.

Bishop, Tara F. et. al. (2011). Declines in physician acceptance of Medicare and private Coverage. Archives of Internal Medicine, 171 (12): 1117 - 1119. doi:10.1001/archinternmed.2011.251. http://archinte.ama-assn.org/cgi/content/short/171/12/1117

Authors: Tara F. Bishop, Alex D. Federman and Salomeh Keyhani.


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Hospitals Respond To Medicare Payment Shortfalls By Both Shifting Costs And Cutting Them, Based On Market Concentration

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Topics: Health Care Reform | Medicare | Spending

Health Affairs has released a study finding that hospitals in areas with robust hospital competition tend to address shortfalls between Medicare payments and projected costs primarily by reducing hospital costs.  Conversely, the authors found that hospitals in areas where hospital care is concentrated among a limited number of providers respond by raising the prices they charge private insurers, in a practice known as “cost shifting”.  The authors argue that their findings necessitate a policy discussion about whether increased provider integration will interfere with the national health care reform law’s goal of reducing Medicare spending, as increased integration could reduce market competition and, in turn, increase the use of cost shifting.

Robinson, James. (2011). Hospitals respond to Medicare payment shortfalls by both shifting costs and cutting them, based on market concentration. Health Affairs, 30 (7): 1265-1271. doi: 10.1377/hlthaff.2011.0220. http://content.healthaffairs.org/content/30/7/1265.abstract exit disclaimer small icon

Author: James Robinson.


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Managed Long Term Care: Options for New York and Examples From Other States

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Topics: Dual Eligibles | Managed Care | Medicare

Mathematica Policy Research has released a brief examining managed long-term care.  Focusing on options for New York State, the brief also offers general options available to all states.  The authors also offer options for improving dual eligibles' care.

From the report:

The Federal Coordinated Health Care Office (renamed the Medicare-Medicaid Coordination Office) and the Center for Medicare and Medicaid Innovation are partnering to help states develop integrated care programs for dual eligibles.  CMS selected 15 states on April 14, 2011 to receive contracts of up to $1 million each to help them plan dual eligible demonstration projects.  States selected were CA, CO, CT, MA, MI, MN, NY, NC, OK, OR, SC, TN, VT, WA, and WI.  Planning contracts will be for 18 months, and demonstrations will start in 2012.

Full report: Managed Long Term Care: Options for New York and Examples From Other States (PDF | 197.47 KB)exit disclaimer small icon

Mathematica Policy Research.  (2011).  Managed long term care: options for New York and examples from other states.  Verdier, J.


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Improving Care for Dual Eligibles: Opportunities for Medicare Managed Care Plans

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Topics: Dual Eligibles | Quality | Spending

Mathematica Policy Research has released a brief examining opportunities to improve dual eligibles' care through managed care plans in Medicare.  The authors offer background on dual eligibles and state efforts to manage their care.  The brief also examines opportunities for expanding managed care for dual eligibles under the national health care reform law.

From the report:

Only July 8, 2011, CMS announced three new initiatives to assist states in improving care for dual eligibles.  Two new financial models to support state efforts to coordinate care for dual eligibles.  A capitated model in which a state, CMS, and a health plan enter into a three-way contract, and the plan receives a prospective blended payment to provide comprehensive, coordinated care.  A managed fee-for-service model in which a state and CMS enter into an agreement that would permit the state to share in Medicare savings for care coordination initiatives.

Full report: Improving Care for Dual Eligibles: Opportunities for Medicare Managed Care Plans (PDF | 183.71 KB)exit disclaimer small icon

Mathematica Policy Research.  (2011).  Improving care for dual eligibles: opportunities for Medicare managed care plans.  Verdier, J.


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Does Medication Adherence Lower Medicare Spending Among Beneficiaries with Diabetes?

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Topics: Medicare | Spending

Health Services Research has published a study examining whether medication adherence lowers Medicare spending among beneficiaries with diabetes.  The authors found that adherence does lower Medicare costs, and offered strategies to improve medication adherence and lower costs.

Stuart, B., et. al.  (2011).  Does medication adherence lower Medicare spending among beneficiaries with diabetes?  Health Services Research, 46 (4): 1180-1999.  doi: 10.1111/j.1475-6773.2011.01250.x.  http://onlinelibrary.wiley.com/doi/10.1111/j.1475-6773.2011.01250.x/abstract;jsessionid=BB6A0465FAAD18988396BD81997BF844.d03t04exit disclaimer small icon

Authors: Bruce Stuart, Amy Davidoff, Ruth Lopert, Thomas Shaffer, J. Samantha Shoemaker and Jennifer Lloyd.


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Raising the Age of Medicare Eligibility: A Fresh Look Following Implementation of Health Reform

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Topics: Medicare | Spending

The Kaiser Family Foundation has released a brief examining the effect of raising the Medicare eligibility age to 67.  An update of a March 2011 study, the July version accounts for additional aspects of the national health care reform law.  The authors estimate that raising the eligibility age to 67 in 2014 would generate $5.7 billion in federal savings.  However, the brief also projects that doing so would increse 65 and 66 year olds' out-of-pocket (OOP) costs by $3.7 billion, and employers' retiree health costs by $4.5 billion.

From the report:

As the debate over the federal deficit takes hold, some are proposing to raise the age of Medicare eligibility beyond age 65 as one among many options to reduce entitlement spending. Previous studies, conducted prior to the enactment of the 2010 health reform law, show that an increase in the age of Medicare eligibility would be expected to reduce Medicare spending, but also increase the number of uninsured 65 and 66 year olds, many of whom would be expected to have difficulty finding comparable coverage on their own, either because of prohibitively expensive premiums or coverage limitations imposed on those with pre-existing conditions. Our analysis differs from prior analyses of raising the age of Medicare eligibility primarily because it takes into account key provisions in the 2010 health reform law, which provides new avenues to public and private health insurance coverage for those under age 65, including expanded Medicaid eligibility and a new health insurance exchange.

Full report: Raising the Age of Medicare Eligibility: A Fresh Look Following Implementation of Health Reform (PDF | 840.34 KB)exit disclaimer small icon

Kaiser Family Foundation.  (2011).  Raising the age of Medicare eligibility: a fresh look following implementation of health reform.  Neuman, T., Cubanski, J., Waldo, D., Eppig, F. and Mays, J.


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