The Challenges of Bringing Market-Based Reforms to Medicare
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.
The study resulted in three policy briefs (released April 2013) that together offer market-based solutions to both Medicare’s sustainability crisis and the inherent inefficiencies of the current system.
- The Role of Medicare Fee-for-Service in Inefficient Health Care Delivery
- A Competitive Bidding Approach to Medicare Reform
- Plan Competition and Consumer Choice in Medicare: The Case for Premium Support
The project team organized a public conference to present project work, “Markets, Not Madness: Medicare Reform That Works” held in Washington on April 16, 2013.
Members of an advisory roundtable held in October 2013 produced a research agenda to inform further efforts to promote market-based reforms of Medicare and the broader health care system.