Does Managed Care Work for Medicare? An Evaluation of the Medicare Risk Program for HMOs

This report, which found that the Medicare risk program for HMOs did not save money for the federal government, and in fact cost more than if enrollees had not joined HMOs, touched off a fierce debate about payment rates and mechanisms for Medicare managed care that continues today. The report also found that the quality of care delivered in HMOs was quite similar to that provided by Medicare and that, although HMO enrollees were less satisfied than other beneficiaries with some aspects of their care, 93 percent would recommend their plan to family and friends.