Medicare, Modernization and FEHBP

Testimony

Medicare, Modernization and FEHBP

March 20, 2002

Abstract

Testimony by Urban Institute Senior Fellow Marilyn Moon before the Senate Subcommittee on Health, Committee on Energy and Commerce. Moon argues in her testimony that privatization of Medicare can be disadvantageous to beneficiaries of the program, failing to achieve all or most of the three advantages usually cited for using the Federal Employees Health Benefits Program (FEHBP) as a model for reform. Such an approach also would create additional risks. In addition to looking at the issues surrounding the economic incentives that are the heart of the argument for privatization, Moon considers experience both with the current Medicare+Choice program and the Federal Employees Health Benefits Program (FEHBP). Moon ends her testimony by advocating a go-slow approach to revising the role of private plans in Medicare; and offers a set of recommendations aimed at protecting the interests of beneficiaries.

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