Medicare Managed Care a Mixed Bag, But Promising

Although Medicare Advantage programs, under which providers receive a flat monthly rate instead of traditional fees for each service, aren’t yet proven to save Medicare money, many patient indicators like costly hospital stays have dropped under such plans, according to a report by Forbes magazine.

A study released this month reported ER visits dropped by up to one-third, hospital stays were shorter, and outpatient surgeries and hospital readmissions were rarer for Medicare Advantage patients as for fee-for-service Medicare beneficiaries.

The flat rate paid by Medicare Advantage plans means providers get to profit from money not spent on care for such beneficiaries, but assume financial risks for care in excess of those payments.

Medicare Managed Care a Mixed Bag, But Promising

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