Modernizing Medicare centers on reforming Medicare Advantage, which unlike traditional, fee-for-service Medicare, provides care through private plans. It has proven immensely popular, with enrollment having increased from 6% of all beneficiaries in 1992 to 31% in 2016. But current policies prevent the program from delivering high-quality, low-cost care to its full potential. The solution lies in reforming incentives and expanding competition among the program’s plans and providers, which would accelerate the cost-saving innovations that arise routinely in other industries with vibrant markets.
CED projects that its plan would yield considerable savings if the following reforms were to be enacted: