Comparison of Performance of Traditional Medicare vs Medicare Managed Care

Abstract
The Medicare + Choice program stands at a critical juncture. Several years ago, Medicare managed care (MMC) was experiencing substantial growth, and many believed that the program would grow to encompass the majority of care for Medicare beneficiaries.1,2 The Bush administration initially aimed to double enrollment in Medicare + Choice.3 In recent years, however, new regulations and the Balanced Budget Amendment of 1997 reduced reimbursement rates for participating health plans, causing many to leave.4-10 Enrollment in MMC has decreased from 6.8 million in 2000 to 5.2 million in 2003.11 The largest cuts in reimbursement have been in areas of the country where managed care is more prevalent.