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The Balanced Budget Act of 1997 made the most substantial changes to the Medicare program since its inception in 1965. One of the most significant changes was the enactment of the Medicare+Choice program, which would create opportunities for four new types of private plan options for Medicare beneficiaries, along with the existing Medicare HMO option and the traditional fee-for-service option. This experiment was generally not successful, and this study was designed to explore the reasons that the program did not succeed. The methodology involves interviews with subject matter experts representing Congressional staff, Medicare officials, and insurance industry employees; exploration of analytical implementation models; and an original methodology termed assertion analysis. The research question that the study primarily addresses is what factor is most responsible for the problems of Medicare+Choice: the Congressional design of the program, the performance of CMS in implementing the program, or the dramatic changes in the healthcare system that occurred during the 1995-99 period.
On March 4 and 5, 1998, the Institute of Medicine (IOM) Committee on Choice and Managed Care held a 2-day workshop entitled Developing the Information Infrastructure for Medicare Beneficiaries. This workshop was a follow-up to the IOM report entitled Improving the Medicare Market: Adding Choice and Protections. The workshop focused on the Medicare provisions in the Balanced Budget Act of 1997, which mandate that the Health Care Financing Administration (HCFA) develop a "nationally coordinated education and publicity campaign" in 1998 and move Medicare beneficiaries to an open-season enrollment process by the year 2002.
Following the implementation of Medicare+Choice, many health care plans terminated their contracts & fully withdrew from the program or partially withdrew by reducing the geographic areas they served, & more have announced that they will withdraw for the 2001 contract year. This report (1) determines the geographic distribution & the distribution among plans of enrollees affected by the recent plan withdrawals, (2) identifies the factors associated with plans that terminated or reduced their participation in the program, & (3) examines the likely role of payment rates in affecting plans' decisions. Analyzes enrollment & plan participation data. Tables.