Medicare Advantage Can Solve Bureaucratic Bumbling | Economics21

Medicare Advantage Can Solve Bureaucratic Bumbling | Economics21:

"Anyone who has ever received an “Explanation of Benefits” statement has likely been struck by the complexity of medical billing. 

Even relatively simple consultations can yield a list of separate charges for physician work, facility costs, and diagnostic tests. 

For hospitalization, many additional payments (for anesthesiology, radiology, drugs, rehabilitation, and so on) may accompany the direct costs. 

Yet, all are often bound together as parts of the same course of treatment.

...Fortunately, the objectives of the law can be achieved through Medicare Advantage – an insurance plan embraced by a third of Medicare beneficiaries. 

Medicare Advantage protects patients and taxpayers from high medical costs, while encouraging innovation and reducing micromanagement.

Medicare costs have risen steadily from $8 billion in 1970, the program’s inception, to $679 billion in 2017. 

...Thankfully, there is a better alternative – Medicare Advantage, which already protects taxpayers and patients from providers claiming reimbursement for inflated volumes of low-value care without government micromanagement. 

Medicare Advantage provides a single payment for its beneficiaries to receive healthcare coverage from their choice of private insurers. 

Its plans must bear any costs incurred treating patients, regardless of whether they operate with tight managed-care networks or as fee-for-service benefits without networks. 

All have an incentive to deliver the best quality of care for the lowest cost..."

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