Question

Overview Solving the Medicare Crisis You are chief of staff to your brother-in-law, Representative Howard Hughes, who was recently elected to fill out a term in Congress. He has been asked to participate in a panel discussion on the Medicare funding crisis. You have been asked to prepare a paper for him. The panel is asked to respond to a proposal for reducing Medicare expenditures by adding Part X to the current Part A - Hospital coverage, Part B - Outpatient coverage, Part C - Managed care, and Part D - Prescription drug coverage. What would Medicare Part X contain? Key Questions The following key questions must be addressed in the paper. • Define the coverage element(s) for the proposed Medicare Part X. • Provide detailed explanations of costs and benefits and related economic principles to support the proposed Medicare Part X. • Identify how the proposed Medicare Part X will be funded. • Include a section entitled "Contingency Planning" on how your Medicare Part X recommendation(s) would or would not change if a new federal law was passed that required all individuals over age 65 to purchase long-term care insurance for assisted-living and nursing home (i.e., skilled nursing facility) services. Be sure to include rationale and justification. See the Case Study Grading Rubric for more information. Your congressperson wants to appear intelligent. Do not be afraid to refer to economic theory or theories of distributive justice. Details • Prepare a written response to questions following the Case Study requirements and expectations. • In general, the length of this case study should be no fewer than three pages (not including a cover or reference page), double spaced.

Answer 1

Adoption of competitive bidding for Medicare :- may be included in the current health care plans as Medicare pays private health plan a monthly amount based on a benchmark equal to fixed percentage of fee for service cost in the local area adopting a competitive bidding structure for the benchmark determined by the average Bid could bring down the Medicare advantage cost and improve the quality particularly in the urban areas with greater compition among the best plans made.

Ans:-1 )benefits of competitive bidding :-

It is most important price setting mechanism and it's outcome mainly depends on the compition in the market

Bidding has been central to procurement process

Any comertial insurer that would like to offer an MA plan submit a plan specific Bud to the center of Medicare and Medicaid service the bid must be accomplished by projected enrollment of the companies covered by the plan

From the projected enrollment the CMS will decide the plan specific payment and an associated premiums charged to beneficiaries

Compition gives plan an incentive to bid low in order to attract the consumer

The success of the system and likely success of alternative bid based system depends on the extent of competition and to assess the nature of the compition variation in the banchmark can be used