The Challenges of Bringing Market-Based Reforms to Medicare

Identifying solutions in the context of the Affordable Care Act

Dates of Project: May 2012–October 2013

Misaligned incentives embedded in Medicare fee-for-service provider reimbursement have affected the entire health care delivery system (because of Medicare’s dominant size in the marketplace), driving up costs without commensurate increases in health care quality.

Description: With reform of fee-for-service Medicare as a focus, in 2011–2013 the American Enterprise Institute for Public Policy Research and RWJF convened a roundtable of health policy experts that determined the themes for a study of Medicare; then AEI commissioned papers analyzing market-based solutions to both Medicare’s projected sustainability crisis and the inherent inefficiencies of the current system and held another roundtable.

Key Results

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3 policy briefs commissioned by #AEI identify market-based solutions for Medicare sustainability