Dive Brief:
- While the Medicare Advantage program has been embraced as a major growth opportunity for insurers, some healthcare experts suggest that Medicare officials should refrain from privatizing the program any further.
- The debate comes as some government officials seek to shift all beneficiaries to private managed-care plans, reports Philly.com.
- Proponents argue that Medicare is more efficient than Medicare Advantage, with the federal government spending about 2% on administrative overhead while the private sector spends about 17% on overhead. As a result, Medicare Advantage costs members 13% more than traditional Medicare, they say.
Dive Insight:
Medicare Advantage is in the limelight as a target for future growth in the private industry and now attracts more than 30% of beneficiaries, Philly.com reports, meaning that nearly a third of Medicare is now operated through private companies.
The debate comes down to efficiency vs. innovation; some point toward the federal government as more efficient while others suggest private systems are more ripe for innovation.
"It is the balance of government and private roles that keeps Medicare running so effectively," the artice concludes. "Further privatization might bring some benefits, but only if it is implemented with great care."