Issue Brief

No. 750

Medicare Competitive Pricing: Lessons Being Learned in Phoenix and Kansas City
November 8, 1999

Author

Nora Super

Summary

Written as policymakers scrutinized two Medicare competitive bidding demonstration projects set to take place in Phoenix and Kansas City, this issue brief analyzes two demonstration projects designed to test whether Medicare could pay health plans in a competitive manner. The brief reviews decisions made by the Competitive Pricing Advisory Commission (CPAC), including design considerations such as plan eligibility and participation, the standard benefit package, the bidding process, and the government contribution to premiums. It also looks at the reasons for opposition to the project and the relationship of this demonstration to broader efforts to reform the Medicare program.

Related Materials

See also the entry for the related Forum Session.

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