tci Part B Insider - 2003 Issue 11

Medicare Private Plans: Nudging Patients Into Private Health Plans

Physicians may still have to deal with preferred provider organizations, but it won't be in the name of saving Medicare money.An actuarial projection released June 2 by the Centers for Medicare and Medicaid Services shows that Medicare wouldn't save much money with PPOs in a competitive environment. The program would save $22 billion over 10 years, a savings CMS Administrator Tom Scully termed "marginal" at a June 2 press briefing.Medicare, as constructed under current law, is expected to cost about $3.8 trillion over the next decade. That means the projected savings from incorporating PPOs amount to...

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