Medicare Savings-Medicare Enrollment
Published August 19, 2015
Third Way asked Avalere Health to estimate the federal and beneficiary cost and savings associated with proposed Medicare’s default choice to highest-value plan policy. Under this proposal, new Medicare enrollees who do not actively choose to enroll either in a Medicare Advantage (MA) plan or fee-for-service (FFS) would be automatically enrolled in the highest-value plan in their region. These new enrollees who are assigned to default choice plan would then have the option to change to their enrollment to another plan, either in a MA plan or to traditional FFS.
Avalere estimates this proposal would reduce the federal deficit by $69.5 billion over the FY 2015 – FY 2024 budget window. We estimate $80.5 billion in lower federal spending as new enrollees are automatically enrolled in high value MA plans rather than traditional FFS plans. We estimate $11.0 billion in higher federal spending due to market shifts as MA plans respond to the new risk profile of enrollees.
To read this Report, open the attached PDF.
FRESH THINKING DELIVERED TO YOUR INBOX
Subscribe to receive email alerts for our products and events and customize your subscription to suit your areas of interest. Your email will never be shared with any third party, and you can unsubscribe at any time.