Measuring the costs and benefits of Medicare private fee-for-service

The Foundation's Changes in Health Care Financing and Organization program was designed to support research, demonstration, and evaluation projects examining major changes in health care financing.The researchers under this project will explore how private fee-for-service (PFFS) plan and beneficiary choices are affected by Medicare payment policy. PFFS plans cover services from any Medicare-qualified provider and pay physicians by fee-for-service. The researchers will measure the effects of payment changes on PFFS plan decisions regarding market entry, benefit design, and premiums and then analyze the effects of changes in benefits and premiums on enrollment. They will address the following research questions: (1) how would plan availability be affected if payment rates were reduced; (2) how would premiums and benefits be affected by changes in payment rates; and (3) how does the value to beneficiaries of the PFFS option compare to its cost to the taxpayers? The objective of the project is to inform policy-makers about the costs and benefits of paying private Medicare health insurance plans.

Grant Details

Amount Awarded $299,549.00

Awarded on: 12/20/2007

Time frame: 2/1/2008 - 7/31/2010

Grant Number: 63744


Boston VA Research Institute, Inc.

150 South Huntington Avenue, Suite 151B
Boston, 02130-4817


Steven D. Pizer
Project Director